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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

300

units

@ $14.00

=

$

4,200

Jan.

10

Sales

250

units

@ $44.00

Mar.

14

Purchase

520

units

@ $19.00

=

9,880

Mar.

15

Sales

460

units

@ $44.00

July

30

Purchase

500

units

@ $24.00

=

12,000

Oct.

5

Sales

480

units

@ $44.00

Oct.

26

Purchase

200

units

@ $29.00

=

5,800

Totals

1,520

units

$

31,880

1,190

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.

Ducumeri 2 - Word 5 Puhul CH Cassandra page File HTIE 1211 DIGN Design Layout Relereres Mailings Reven Hep Picture Fortal Tell me what you want to do 2. Share Required information 1 Perpetual FIFO: : Goods Purchased # of Cost per units unit Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Date Inventory Balance Cost per Inventory # of units unit Balance 300 @ $ 14.00 = S 4.200.00 Part 1 of 2 January 1 $= January 10 March 14 4.16 points March 16 July 30 October 5 October 26 Totals Per 1 afwich ID 0 Type here to search x +994 6:16 AM P 11/7/21721 19 Socials... 11 Sam... Cl 6: II... 6 w Busines . * Ducure.. * Docunie... 30F 30! H55 Ducumeri 2 - Word Puhul Cassandra page CF File Horte Insel Mailings Reven Her Picture Fortal Tell me what you want to do 2. Share DIGN Design Layout Relerence: Required information 1 Perpetual LIFO Goods Purchased # # of Cost per units unit Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Date Inventory Balance Cost per Inventory # of units Balance 300 @ S 14.00 = $ 4,200.00 unit Part 1 of 2 January 1 January 10 4.16 points March 14 March 15 July 30 October 5 October 26 Totals Perawach - 20 327 Type here to search Social ... 11 Sam... Ch6: IL... : + 6:16 AM 11/21/2001 w Busines . * Ducume.. * Docunte... 30F P 19

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