Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units...

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Accounting

Hemming Co. reported the following current-year purchases andsales for its only product.
Date Activities Units Acquired at Cost Units Sold at Retail
Jan. 1 Beginning inventory 280 units @ $13.20 = $ 3,696
Jan. 10 Sales 240 units @ $43.20
Mar. 14 Purchase 460 units @ $18.20 = 8,372
Mar. 15 Sales 410 units @ $43.20
July 30 Purchase 480 units @ $23.20 = 11,136
Oct. 5 Sales 450 units @ $43.20
Oct. 26 Purchase 180 units @ $28.20 = 5,076
Totals 1,400 units $ 28,280 1,100 units
Required:
Hemming uses a perpetual inventory system.

1. Determine the costs assigned to endinginventory and to cost of goods sold using FIFO.
2. Determine the costs assigned to endinginventory and to cost of goods sold using LIFO.
3. Compute the gross margin for FIFO method andLIFO method.
Perpetual LIFO:
Goods Purchased Cost of Goods Sold Inventory Balance
Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance
January 1 280 @ $13.20 = $3,696.00
January 10
March 14
March 15
July 30
October 5
October 26
Totals $0.00

Answer & Explanation Solved by verified expert

4.2 Ratings (692 Votes)

FIFO Perpectual Goods Purchased Cost of Good Sold Inventory Balance Date of Units Cost per Unit Purchase Total Cost of Unit Sold Cost per Unit Cost of Good Sold of Units Cost per Unit Inventory Total Cost Jan01 280 1320 369600 Jan10 240 1320 316800 40 1320 52800 See Answer

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