Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Sold at Retail Jan. 1 Beginning inventory Jan. 10 Sales Units Acquired at Cost. 275 units @ $13.00 = $ 3,575 230 units@ $43.00 450 units @ $18.00 E 8,100 400 units @ $43.00 Mar. 14 Purchase Mar.15 Sales July 30 Purchase Oct. 5 Sales: 475 units @ $23.00 = 10,925 455 units @ $43.00 Oct.26 Purchase Totals 175 units@ $28.00 = 1,375 units 4,900 $27,500 1,085 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. Buon 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 of Goods Sold Cost per unit #of units sold Date Cost of Goods Sold units # of units January 1 January 10 $ 13.00 March 14 March 15 $13.00 = $18.00 October 5 $ 13.00 = $18.00 $ 23.00 October 26 Totals I Cost per unit 450@ $18.00 476 @ $23.00 176 @ $28.00 230 @ 45 @ 355 @ 95 @ 360 @ 11 11 11 11 TE $ 2,990.00 S 585.00 8.390.00 $8.975.00 0.00 1.710.00 8.290.00 $ 9.990.00 $19.955.00 000 1501 S 275 45 @ 45 @ @ 450 HIIRE @@ 95 476 000 Inventory Balance Cost per unit $ 13.00 $13.00 $ 13.00 $18.00 = $ 13.00 $18.00 = $ 13.00 $18.00 = $23.00 = $ 18.00 $18.00 323.00 = 116 00000 @ $13.00 5 18.00 323 CO 2 5:26 00 115 = ME 11 Inventory Balance $3,575.00 585.00 585.00 8,100.00 $ 8,885.00 $ 1,710.00 S 1,710.00 1,710.00 10.925.00 3 12.635.00 2845.00 $ 2.646.00 2845.00 4 900.00 $ 7.545.00 GU 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 #of Cost of Goods Sold Cost per unit # of units sold Date Cost of Goods Sold # of units units January 1 January 10 $ 13.00 March 14 March 15 July 30 October 5 October 28 Tota's Cost per unit 450 @ $18.00 475 @ $23.00 230 @ = $ 2,990.00 3 3.990.00 Inventory Balance Cost per unit $13.00 = $13.00 = $ 13.00 $18.00 $ 23.00 275 @ 45 @ Inventory Balance $ 3,575.00 $ 585.00 Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Sold at Retail Jan. 1 Beginning inventory Jan. 10 Sales Units Acquired at Cost. 275 units @ $13.00 = $ 3,575 230 units@ $43.00 450 units @ $18.00 E 8,100 400 units @ $43.00 Mar. 14 Purchase Mar.15 Sales July 30 Purchase Oct. 5 Sales: 475 units @ $23.00 = 10,925 455 units @ $43.00 Oct.26 Purchase Totals 175 units@ $28.00 = 1,375 units 4,900 $27,500 1,085 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. Buon 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 of Goods Sold Cost per unit #of units sold Date Cost of Goods Sold units # of units January 1 January 10 $ 13.00 March 14 March 15 $13.00 = $18.00 October 5 $ 13.00 = $18.00 $ 23.00 October 26 Totals I Cost per unit 450@ $18.00 476 @ $23.00 176 @ $28.00 230 @ 45 @ 355 @ 95 @ 360 @ 11 11 11 11 TE $ 2,990.00 S 585.00 8.390.00 $8.975.00 0.00 1.710.00 8.290.00 $ 9.990.00 $19.955.00 000 1501 S 275 45 @ 45 @ @ 450 HIIRE @@ 95 476 000 Inventory Balance Cost per unit $ 13.00 $13.00 $ 13.00 $18.00 = $ 13.00 $18.00 = $ 13.00 $18.00 = $23.00 = $ 18.00 $18.00 323.00 = 116 00000 @ $13.00 5 18.00 323 CO 2 5:26 00 115 = ME 11 Inventory Balance $3,575.00 585.00 585.00 8,100.00 $ 8,885.00 $ 1,710.00 S 1,710.00 1,710.00 10.925.00 3 12.635.00 2845.00 $ 2.646.00 2845.00 4 900.00 $ 7.545.00 GU 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 #of Cost of Goods Sold Cost per unit # of units sold Date Cost of Goods Sold # of units units January 1 January 10 $ 13.00 March 14 March 15 July 30 October 5 October 28 Tota's Cost per unit 450 @ $18.00 475 @ $23.00 230 @ = $ 2,990.00 3 3.990.00 Inventory Balance Cost per unit $13.00 = $13.00 = $ 13.00 $18.00 $ 23.00 275 @ 45 @ Inventory Balance $ 3,575.00 $ 585.00 Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Sold at Retail Jan. 1 Beginning inventory Jan. 10 Sales Units Acquired at Cost. 275 units @ $13.00 = $ 3,575 230 units@ $43.00 450 units @ $18.00 E 8,100 400 units @ $43.00 Mar. 14 Purchase Mar.15 Sales July 30 Purchase Oct. 5 Sales: 475 units @ $23.00 = 10,925 455 units @ $43.00 Oct.26 Purchase Totals 175 units@ $28.00 = 1,375 units 4,900 $27,500 1,085 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. Buon 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 of Goods Sold Cost per unit #of units sold Date Cost of Goods Sold units # of units January 1 January 10 $ 13.00 March 14 March 15 $13.00 = $18.00 October 5 $ 13.00 = $18.00 $ 23.00 October 26 Totals I Cost per unit 450@ $18.00 476 @ $23.00 176 @ $28.00 230 @ 45 @ 355 @ 95 @ 360 @ 11 11 11 11 TE $ 2,990.00 S 585.00 8.390.00 $8.975.00 0.00 1.710.00 8.290.00 $ 9.990.00 $19.955.00 000 1501 S 275 45 @ 45 @ @ 450 HIIRE @@ 95 476 000 Inventory Balance Cost per unit $ 13.00 $13.00 $ 13.00 $18.00 = $ 13.00 $18.00 = $ 13.00 $18.00 = $23.00 = $ 18.00 $18.00 323.00 = 116 00000 @ $13.00 5 18.00 323 CO 2 5:26 00 115 = ME 11 Inventory Balance $3,575.00 585.00 585.00 8,100.00 $ 8,885.00 $ 1,710.00 S 1,710.00 1,710.00 10.925.00 3 12.635.00 2845.00 $ 2.646.00 2845.00 4 900.00 $ 7.545.00 GU 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 #of Cost of Goods Sold Cost per unit # of units sold Date Cost of Goods Sold # of units units January 1 January 10 $ 13.00 March 14 March 15 July 30 October 5 October 28 Tota's Cost per unit 450 @ $18.00 475 @ $23.00 230 @ = $ 2,990.00 3 3.990.00 Inventory Balance Cost per unit $13.00 = $13.00 = $ 13.00 $18.00 $ 23.00 275 @ 45 @ Inventory Balance $ 3,575.00 $ 585.00