Question

In: Accounting

The following information applies to the questions displayed below.]    Hemming Co. reported the following current-year...

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 275 units @ $13.00 = $ 3,575
Jan. 10 Sales 230 units @ $43.00
Mar. 14 Purchase 450 units @ $18.00 = 8,100
Mar. 15 Sales 400 units @ $43.00
July 30 Purchase 475 units @ $23.00 = 10,925
Oct. 5 Sales 455 units @ $43.00
Oct. 26 Purchase 175 units @ $28.00 = 4,900
Totals 1,375 units $ 27,500 1,085 units

Required:
Hemming uses a periodic inventory system.
  
(a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.

(b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.

(c) Compute the gross margin for each method.

Solutions

Expert Solution

Workings and Answer to Question a:

Answer to Question b and c:


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