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 220 units @ $10.80 = $ 2,376
Jan. 10 Sales 190 units @ $40.80
Mar. 14 Purchase 330 units @ $15.80 = 5,214
Mar. 15 Sales 280 units @ $40.80
July 30 Purchase 420 units @ $20.80 = 8,736
Oct. 5 Sales 390 units @ $40.80
Oct. 26 Purchase 120 units @ $25.80 = 3,096
Totals 1,090 units $ 19,422 860 units
Required:
Hemming uses a periodic inventory system.

(a) Determine the costs assigned to ending inventory and to cost ofgoods sold using FIFO.
(b) Determine the costs assigned to ending inventory and to costof goods sold using LIFO.
(c) Compute the gross margin for each method.
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 220 units @ $10.80 = $ 2,376
Jan. 10 Sales 190 units @ $40.80
Mar. 14 Purchase 330 units @ $15.80 = 5,214
Mar. 15 Sales 280 units @ $40.80
July 30 Purchase 420 units @ $20.80 = 8,736
Oct. 5 Sales 390 units @ $40.80
Oct. 26 Purchase 120 units @ $25.80 = 3,096
Totals 1,090 units $ 19,422 860 units

Answer & Explanation Solved by verified expert

3.6 Ratings (266 Votes)

a Computation is Cost of goods sold Ending inventory and Gross profit by using FIFO Methods and LIFO Methods FIFO Methods Total units 1090 units Number of units sold 860 units See Answer

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