The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 275 units @ $13.00 = $ 3,575 Jan. 10 Sales 230 units @ $43.00 Mar. 14 Purchase 450 units @ $18.00 = 8,100 Mar. 15 Sales 400 units @ $43.00 July 30 Purchase 475 units @ $23.00 = 10,925 Oct. 5 Sales 455 units @ $43.00 Oct. 26 Purchase 175 units @ $28.00 = 4,900 Totals 1,375 units $ 27,500 1,085 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 margin for FIFO method and LIFO method.
The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 275 units @ $13.00 = $ 3,575 Jan. 10 Sales 230 units @ $43.00 Mar. 14 Purchase 450 units @ $18.00 = 8,100 Mar. 15 Sales 400 units @ $43.00 July 30 Purchase 475 units @ $23.00 = 10,925 Oct. 5 Sales 455 units @ $43.00 Oct. 26 Purchase 175 units @ $28.00 = 4,900 Totals 1,375 units $ 27,500 1,085 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 margin for FIFO method and LIFO method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information applies to the questions displayed below.]
Hemming Co. reported the following current-year purchases and sales for its only product.
| Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||||||
| Jan. | 1 | Beginning inventory | 275 | units | @ $13.00 | = | $ | 3,575 | ||||||||
| Jan. | 10 | Sales | 230 | units | @ $43.00 | |||||||||||
| Mar. | 14 | Purchase | 450 | units | @ $18.00 | = | 8,100 | |||||||||
| Mar. | 15 | Sales | 400 | units | @ $43.00 | |||||||||||
| July | 30 | Purchase | 475 | units | @ $23.00 | = | 10,925 | |||||||||
| Oct. | 5 | Sales | 455 | units | @ $43.00 | |||||||||||
| Oct. | 26 | Purchase | 175 | units | @ $28.00 | = | 4,900 | |||||||||
| Totals | 1,375 | units | $ | 27,500 | 1,085 | 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 margin for FIFO method and LIFO method.
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