Question

In: Accounting

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

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 260 units @ $12.40 = $ 3,224 Jan. 10 Sales 215 units @ $42.40 Mar. 14 Purchase 420 units @ $17.40 = 7,308 Mar. 15 Sales 380 units @ $42.40 July 30 Purchase 460 units @ $22.40 = 10,304 Oct. 5 Sales 425 units @ $42.40 Oct. 26 Purchase 160 units @ $27.40 = 4,384 Totals 1,300 units $ 25,220 1,020 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.

Solutions

Expert Solution


Related Solutions

Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units...
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 120 units @ $10.80 = $ 1,296 Jan. 10 Sales 110 units @ $40.80 Mar. 14 Purchase 270 units @ $15.80 = 4,266 Mar. 15 Sales 160 units @ $40.80 July 30 Purchase 420 units @ $20.80 = 8,736 Oct. 5 Sales 280 units @ $40.80 Oct. 26 Purchase 620 units @ $25.80...
Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units...
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 110 units @ $10.40 = $ 1,144 Jan. 10 Sales 100 units @ $40.40 Mar. 14 Purchase 260 units @ $15.40 = 4,004 Mar. 15 Sales 150 units @ $40.40 July 30 Purchase 410 units @ $20.40 = 8,364 Oct. 5 Sales 290 units @ $40.40 Oct. 26 Purchase 610 units @ $25.40...
Hemming Co. reported the following current-year purchases and sales for its only product Date Activities Units...
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 210 units @ $10.40 = $ 2,184 Jan. 10 Sales 170 units @ $40.40 Mar. 14 Purchase 310 units @ $15.40 = 4,774 Mar. 15 Sales 270 units @ $40.40 July 30 Purchase 410 units @ $20.40 = 8,364 Oct. 5 Sales 380 units @ $40.40 Oct. 26 Purchase 110 units @ $25.40...
Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units...
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 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...
Hemming Co. reported the following current-year purchases and sales for its only product.    Date Activities...
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 125 units @ $11.00 = $ 1,375 Jan. 10 Sales 115 units @ $41.00 Mar. 14 Purchase 275 units @ $16.00 = 4,400 Mar. 15 Sales 165 units @ $41.00 July 30 Purchase 425 units @ $21.00 = 8,925 Oct. 5 Sales 275 units @ $41.00 Oct. 26 Purchase 625 units @...
Hemming Co. reported the following current-year purchases and sales for its only product.    Date Activities...
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 140 units @ $11.60 = $ 1,624 Jan. 10 Sales 130 units @ $41.60 Mar. 14 Purchase 290 units @ $16.60 = 4,814 Mar. 15 Sales 180 units @ $41.60 July 30 Purchase 440 units @ $21.60 = 9,504 Oct. 5 Sales 260 units @ $41.60 Oct. 26 Purchase 640 units @...
Hemming Co. reported the following current-year purchases and sales for its only product.      Date Activities...
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 200 units @ $10 = $ 2,000 Jan. 10 Sales 150 units @ $40 Mar. 14 Purchase 350 units @ $15 = 5,250 Mar. 15 Sales 300 units @ $40 July 30 Purchase 450 units @ $20 = 9,000 Oct. 5 Sales 430 units @ $40 Oct. 26 Purchase 100 units @...
Hemming Co. reported the following current-year purchases and sales for its only product.      Date Activities...
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 260 units @ $12.40 = $ 3,224 Jan. 10 Sales 215 units @ $42.40 Mar. 14 Purchase 420 units @ $17.40 = 7,308 Mar. 15 Sales 380 units @ $42.40 July 30 Purchase 460 units @ $22.40 = 10,304 Oct. 5 Sales 425 units @ $42.40 Oct. 26 Purchase 160 units @...
Hemming Co. reported the following current-year purchases and sales for its only product.      Date Activities...
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 230 units @ $11.20 = $ 2,576 Jan. 10 Sales 160 units @ $41.20 Mar. 14 Purchase 350 units @ $16.20 = 5,670 Mar. 15 Sales 320 units @ $41.20 July 30 Purchase 430 units @ $21.20 = 9,116 Oct. 5 Sales 400 units @ $41.20 Oct. 26 Purchase 130 units @...
Hemming Co. reported the following current-year purchases and sales for its only product.      Date Activities...
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 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 @...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT