Use the following information for the Exercises below. Skip to question [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 250 units @ $12.00 = $ 3,000 Jan. 10 Sales 200 units @ $42.00 Mar. 14 Purchase 400 units @ $17.00 = 6,800 Mar. 15 Sales 360 units @ $42.00 July 30 Purchase 450 units @ $22.00 = 9,900 Oct. 5 Sales 420 units @ $42.00 Oct. 26 Purchase 150 units @ $27.00 = 4,050 Totals 1,250 units $ 23,750 980 units Exercise 5-7 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 margin for FIFO method and LIFO method.
Use the following information for the Exercises below. Skip to question [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 250 units @ $12.00 = $ 3,000 Jan. 10 Sales 200 units @ $42.00 Mar. 14 Purchase 400 units @ $17.00 = 6,800 Mar. 15 Sales 360 units @ $42.00 July 30 Purchase 450 units @ $22.00 = 9,900 Oct. 5 Sales 420 units @ $42.00 Oct. 26 Purchase 150 units @ $27.00 = 4,050 Totals 1,250 units $ 23,750 980 units Exercise 5-7 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 margin for FIFO method and LIFO method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
Use the following information for the Exercises below.
Skip to question
[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 | 250 | units | @ $12.00 | = | $ | 3,000 | ||||||||
| Jan. | 10 | Sales | 200 | units | @ $42.00 | |||||||||||
| Mar. | 14 | Purchase | 400 | units | @ $17.00 | = | 6,800 | |||||||||
| Mar. | 15 | Sales | 360 | units | @ $42.00 | |||||||||||
| July | 30 | Purchase | 450 | units | @ $22.00 | = | 9,900 | |||||||||
| Oct. | 5 | Sales | 420 | units | @ $42.00 | |||||||||||
| Oct. | 26 | Purchase | 150 | units | @ $27.00 | = | 4,050 | |||||||||
| Totals | 1,250 | units | $ | 23,750 | 980 | units | ||||||||||
Exercise 5-7 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 margin for FIFO method and LIFO method.
Transcribed Image Text:October 26
150 @
$ 27.00
@
$ 27.00
Totals
$ 2,400.00
Transcribed Image Text:Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
Perpetual LIFO:
Goods Purchased
Cost of Goods Sold
Inventory Balance
# of
Cost per
Cost of Goods
Cost per
unit
# of units
sold
Cost per
unit
Inventory
Date
# of units
units
unit
Sold
Balance
January 1
250 @
$ 12.00 =
$ 3,000.00
January 10
200
@
$ 12.00
$ 2,400.00
50 @
$ 12.00 =
$
600.00
March 14
400 @
$ 17.00
50
@
$ 12.00 =
$
600.00
400 @
$ 17.00 =
6,800.00
$ 7,400.00
March 15
$ 12.00
0.00
50 @
$ 12.00 =
$
600.00
@
$ 17.00
0.00
@
$ 17.00
$
600.00
July 30
October 5
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