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 Date of units Cost per unit of units sold Cost per unit Cost of Goods Sold of units Cost per unit Inventory Balance January 1 290 $13 60 $3,944 00 January 10 260 $13 60 $3,536 00 30 $13 60 $408 00 March 14 500 $18 60 30 $13 60 $408 00 500 $18 60 9,300 00 $9,708 00 March 15 0 $13 60 $0 00 30 $13 60 $408 00 400 $18 60 7,440 00 30 $18 60 558 00 $7,440 00 $966 00 July 30 490 $23 60 30 $13 60 $408 00 30 $18 60 558 00 490 $23 60 11,564 00 $12,530 00 October 5 0 $13 60 $0 00 30 $13 60 $408 00 0 $18 60 0 00 30 $18 60 558 00 470 $23 60 11,092 00 20 $23 60 472 00 $11,092 00 $1,438 00 October 26 190 $28 60 30 $13 60 $408 00 30 $18 60 558 00 20 $23 60 472 00 190 $28 60 5,434 00 Totals $22,068 00 $6,872 00 Choose your template FPOspreadsheet FPOgeneral journal FPO 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 290 units $13 60 $ 3,944 Jan 10 Sales 260 units $43 60 Mar 14 Purchase 500 units $18 60 9,300 Mar 15 Sales 430 units $43 60 July 30 Purchase 490 units $23 60 11,564 Oct 5 Sales 470 units $43 60 Oct 26 Purchase 190 units $28 60 5,434 Totals 1,470 units $ 30,242 1,160 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

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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

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
Date	# of units		Cost per unit	# of units sold			Cost per unit	Cost of Goods Sold			# of units			Cost per unit	Inventory Balance
January 1									290	@	$13.60	=	$3,944.00

January 10				260	@	$13.60	=	$3,536.00	30	@	$13.60	=	$408.00

March 14	500	@	$18.60						30	@	$13.60	=	$408.00
									500	@	$18.60	=	9,300.00
													$9,708.00

March 15				0	@	$13.60	=	$0.00	30	@	$13.60	=	$408.00
				400	@	$18.60	=	7,440.00	30	@	$18.60	=	558.00
								$7,440.00					$966.00

July 30	490	@	$23.60						30	@	$13.60	=	$408.00
									30	@	$18.60	=	558.00
									490	@	$23.60	=	11,564.00
													$12,530.00

October 5				0	@	$13.60	=	$0.00	30	@	$13.60	=	$408.00
				0	@	$18.60	=	0.00	30	@	$18.60	=	558.00
				470	@	$23.60	=	11,092.00	20	@	$23.60	=	472.00
								$11,092.00					$1,438.00

October 26	190	@	$28.60						30	@	$13.60	=	$408.00
									30	@	$18.60	=	558.00
									20	@	$23.60	=	472.00
									190	@	$28.60		5,434.00
Totals								$22,068.00					$6,872.00

Choose your template

FPOspreadsheet

FPOgeneral journal

FPO

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.

Beginning inventory

290

units

@ $13.60

3,944

Jan.

Sales

260

units

@ $43.60

Mar.

Purchase

500

units

@ $18.60

9,300

Mar.

Sales

430

units

@ $43.60

July

Purchase

490

units

@ $23.60

11,564

Oct.

Sales

470

units

@ $43.60

Oct.

Purchase

190

units

@ $28.60

5,434

Totals

1,470

units

30,242

1,160

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.