Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

0 Required information The following information applies to the questions displayed below) Hemming Co. reported the following current-year purchases and sales for its only product.

image text in transcribed
image text in transcribed
image text in transcribed
0 Required information 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 Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Det. 5 Sales Oet. 26 Purchase Totals Units Aequired at Cost Units Sold at Retail 260 units $12.40 - $ 3,224 215 unita $42.40 420 units @ $17.40 - 7,308 380 units $42.40 460 units $22.40- 10,304 425 units $42.40 160 units $27.40 - 4,384 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. Perpetual FIFO: Goods Purchased # of Cost per units unit Dato Cost of Goods Sold # of units Cost of Goods sold unit Sold Cost per Inventory Balance Cost per Inventory # of units unit Balance $ 12.40 $ 3,224.00 January 1 260 @ January 10 215 5 12.40 $ 2.666.00 45 $ 12.40 $ 558.00 March 14 4201 $17.40 451 $ 558.00 $ 12.40 - $ 17.40 - 420 @ 7,308,00 $ 7.866.00 March 15 45 335 $12.40S 558.00 $17.40 - 5,820.00 $ 6,387.00 $12.40 $ 17.40 - 85 $ $ 1.479.00 1.479.00 July 30 460 @ $22.40 85 400 $ 12.40 $17.40 $ 22.40- 1.479.00 10.304.00 $ 11,783.00 October 5 $ ele $12.40 $17.40 $22.40 0.00 0.00 @ $ 12.40 $17.40 $22.40 0.00 October 26 1601 a $27.40 ellele $ 12.40 $17.40 $ 22.40 $ 27.40 Total $ 9,053.00 RAQ Required 2 > Required 1 Required 2 Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. Perpetual LIFO Goods Purchased Cost of Goods Sold Inventory Balance of Cost per of units Cost per Cost of Goods Cost per Inventory Date units unit sold unit Sold of units Balance January 1 260 @ $ 1240 a $ 3,224.00 unit January 10 March 14 420 $17.40 $17.40 March 15 July 30 October 5 October 20 $ 0.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Islamic Banks Positioning Study Regulatory Specificities And Audit Particularities

Authors: Hassen BEN OUHIBA

1st Edition

6206279790, 978-6206279792

More Books

Students also viewed these Accounting questions