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

[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

200

units

@ $10

=

$

2,000

Jan.

10

Sales

150

units

@$40

Mar.

14

Purchase

350

units

@ $15

=

5,250

Mar.

15

Sales

300

units

@$40

July

30

Purchase

450

units

@ $20

=

9,000

Oct.

5

Sales

430

units

@$40

Oct.

26

Purchase

100

units

@ $25

=

2,500

Totals

1,100

units

$

18,750

880

units

Required:

Hemming uses a perpetual inventory system.