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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
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. |
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