Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1

Use the following information for the Exercises below.

1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.

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. Units Sold at Retail Units Acquired at Cost 250 units @ $12.00 $ 3,000 200 units @ $42.00 400 units @ $17.00 6,800 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase Totals 360 units @ $42.00 450 units @ $22.00 9,900 420 units @ $42.00 150 units @ $27.00 1,250 units 4,050 $23,750 980 units Required 1 Required 2. Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: Goods Purchased # of Cost units per unit Cost of Goods Sold # of units Cost Cost of Goods sold per Sold unit Date January 1 January 10 Inventory Balance Cost # of units Inventory per Balance unit 250 $ 3,000.00 12.00 $ 50 @ 600.00 12.00 $ $ 50 @ IS 600.00 12.00 $ 400 17.00 6,800.00 $ 7,400.00 IS 12.00 200 $ 2,400.00 March 14 400 @ 17.00 March 15 50 - $ 600.00 S 12.00 S 17.00 310@ 12.00 $ 17.00 5,270.00 90 @ $ 1,530.00 $ 5,870.00 $ 1,530.00 July 30 450 @ $ 22.00 @ 90 @ 1,530.00 12.00 $ 17.00 $ 22.00 450@ 9,900.00 $ 11,430.00 October 5 $ 0.00 90 12.00 $ 17.00 s 22.00 1,530.00 @ $ 12.00 $ 17.00 $ 22.00 330 = 7,260.00 @ $ 8,790.00 October 26 150 > $ 27.00 0 @ $ 12.00 @ @ 17.00 $ 22.00 $ 27.00 Totals 17,060.00 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 units per unit Cost of Goods Sold # of units Cost Cost of Goods sold per Sold unit Date # of units Inventory Balance Cost Inventory per Balance unit $ 3,000.00 12.00 250 January 1 $ @ January 10 March 14 March 15 July 30 October 5 October 26 Totals $ 0.00 Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Required 3 Compute the gross margin for FIFO method and LIFO method. Sales revenue Less: Cost of goods sold Gross margin FIFO: LIFO: $ 41,160 $ 41,160 17,060 17,760 $ 24,100 $ 23,400