Question

Required information

Use the following information for the Exercises below.

[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

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

Exercise 5-9A Periodic: Inventory costing system LO P3

Answer 1

Periodic FIFO :-

FIFO	Cost of Goods Available for Sale			Cost of Goods Sold-Periodic FIFO			Ending Inventory-Periodic FIFO
	# of units	Cost pu	Cost of Goods Available for Sale	# of units	Cost pu	Cost of Goods Sold-Periodic FIFO	# of units	Cost pu	Ending Inventory-Periodic FIFO
Beginning Inventory	280	13.20	3696	280	13.20	3696
Purchases:-
March 14	460	18.20	8372	460	18.20	8372
July 30	480	23.20	11136	360	23.20	8352	120	23.20	2784
Oct 26	180	28.20	5076				180	28.20	5076
Total	1400		28280	1100		20420	300		7860

Periodic LIFO :-

LIFO	Cost of Goods Available for Sale			Cost of Goods Sold-Periodic LIFO			Ending Inventory-Periodic LIFO
	# of units	Cost pu	Cost of Goods Available for Sale	# of units	Cost pu	Cost of Goods Sold-Periodic LIFO	# of units	Cost pu	Ending Inventory-Periodic LIFO
Beginning Inventory	280	13.20	3696				280	13.20	3696
Purchases:-
March 14	460	18.20	8372	440	18.20	8008	20	18.20	364
July 30	480	23.20	11136	480	23.20	11136
Oct 26	180	28.20	5076	180	28.20	5076
Total	1400		28280	1100		24220	300		4060

Average cost :-

Average cost	Cost of Goods Available for Sale			Cost of Goods Sold			Ending Inventory
	# of units	Cost pu	Cost of Goods Available for Sale	# of units	Cost pu	Cost of Goods Available for Sale	# of units	Cost pu	Cost of Goods Available for Sale
Beginning Inventory	280	13.20	3696	1100         20.2        22220			300            20.2                6060
Purchases:-
March 14	460	18.20	8372
July 30	480	23.20	11136
Oct 26	180	28.20	5076
Total	1400		28280	1100		22220	300		6060

Avg cost per unit = Total cost available for sale/No of units available for sale

     = 28280/1400= 20.2