Required information Use the following information for the Exercises 8-10 below. (Algo) Skip to question [The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail January 1 Beginning inventory 230 units @ $11.20 = $ 2,576 January 10 Sales 160 units @ $41.20 March 14 Purchase 350 units @ $16.20 = 5,670 March 15 Sales 320 units @ $41.20 July 30 Purchase 430 units @ $21.20 = 9,116 October 5 Sales 400 units @ $41.20 October 26 Purchase 130 units @ $26.20 = 3,406 Totals 1,140 units $ 20,768 880 units Exercise 5-8 (Algo) Perpetual: Inventory costing methods—FIFO and LIFO LO P1 Required: Hemming uses a perpetual inventory system. 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 3. Compute the gross profit for FIFO method and LIFO method.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information

Use the following information for the Exercises 8-10 below. (Algo)

Skip to question

 

[The following information applies to the questions displayed below.]
  
Hemming Company reported the following current-year purchases and sales for its only product.
    

Date Activities Units Acquired at Cost Units Sold at Retail
January 1 Beginning inventory 230 units @ $11.20 = $ 2,576      
January 10 Sales           160 units @ $41.20
March 14 Purchase 350 units @ $16.20 = 5,670      
March 15 Sales           320 units @ $41.20
July 30 Purchase 430 units @ $21.20 = 9,116      
October 5 Sales           400 units @ $41.20
October 26 Purchase 130 units @ $26.20 = 3,406      
  Totals 1,140 units     $ 20,768 880 units  

 

Exercise 5-8 (Algo) Perpetual: Inventory costing methods—FIFO and LIFO LO P1

Required:
Hemming uses a perpetual inventory system.
  
1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
3. Compute the gross profit for FIFO method and LIFO method.

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