[The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Sales Purchase Sales Purchase Sales Activities Beginning inventory 200 units Units Acquired at Cost @ $10 Units Sold at Retail = $ 2,000 150 units @ $40 350 units @ $15 = 5,250 300 units @ $40 450 units @ $20 = 9,000 430 units @ $40 Purchase Totals 100 units 1,100 units @ $25 2,500 $ 18750 880 units Exercise 6-8 (Static) 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.
[The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Sales Purchase Sales Purchase Sales Activities Beginning inventory 200 units Units Acquired at Cost @ $10 Units Sold at Retail = $ 2,000 150 units @ $40 350 units @ $15 = 5,250 300 units @ $40 450 units @ $20 = 9,000 430 units @ $40 Purchase Totals 100 units 1,100 units @ $25 2,500 $ 18750 880 units Exercise 6-8 (Static) 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use the following information for the Exercises 8-10 below. (Static)
[The following information applies to the questions displayed below.)
Hemming Company reported the following current-year purchases and sales for its only product.
Date
January 1
Activities
Beginning inventory
Units Acquired at Cost
200 units
Units Sold at Retail
January 10
Sales
March 14
March 15
Purchase
Sales
350 units
@ $10 = $2,000
@ $15
5,250
150 units
300 units
@ $40
@ $40
July 30
October 5
October 26
Purchase
Sales
450 units
Purchase
Totals
100 units
1,100 units
@ $20 =
@ $25
9,000
430 units
@ $40
2,500
$ 18750
880 units
Exercise 6-8 (Static) 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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