Silawing current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Activities Units Acquired at Cost 285 units Beginning inventory Sales Purchase Sales Purchase Sales Units Sold at Retail @ $13.40= $ 3,819 470 units e $18.40- 250 units @ $43.40 8,648 485 units O $23.40- 11,349 400 units e $43.40 460 units O $43.40 Purchase Totals 185 units e $28.40- 5,254 $ 29,070 1,425 units 1,110 units 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
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Goods Purchased
Cost of Goods Sold
Inventory Balance
Date
Cost per
unit
Cost per
Cost per
Inventory
Balance
# of units
# of units sold
Cost of Goods Sold
# of units
unit
unit
January 1
January 10
March 14
Total March 14
March 15
Total March 15
July 30
Total July 30
October 5
Total October 5
October 26
0.00
Totals
Transcribed Image Text:Goods Purchased Cost of Goods Sold Inventory Balance Date Cost per unit Cost per Cost per Inventory Balance # of units # of units sold Cost of Goods Sold # of units unit unit January 1 January 10 March 14 Total March 14 March 15 Total March 15 July 30 Total July 30 October 5 Total October 5 October 26 0.00 Totals
Hemming Company reported the following current-year purchases and sales for its only product.
Date
January 1
January 10
March 14
Activities
Units Acquired at Cost
285 units
Beginning inventory
Sales
Purchase
Sales
Purchase
Units Sold at Retail
e $13.40 =
$ 3,819
470 units
e $18.40 =
250 units
@ $43.40
March 15
July 30
October 5
October 26
8,648
485 units
@ $23.40 -
400 units
e $43.40
11,349
Sales
Purchase
460 units
@ $43.40
185 units
e s28.40 =
5,254
$ 29,070
Totals
1,425 units
1,110 units
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.
Transcribed Image Text:Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 March 14 Activities Units Acquired at Cost 285 units Beginning inventory Sales Purchase Sales Purchase Units Sold at Retail e $13.40 = $ 3,819 470 units e $18.40 = 250 units @ $43.40 March 15 July 30 October 5 October 26 8,648 485 units @ $23.40 - 400 units e $43.40 11,349 Sales Purchase 460 units @ $43.40 185 units e s28.40 = 5,254 $ 29,070 Totals 1,425 units 1,110 units 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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