Question
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
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 | 225 | units | @ $11.00 | = | $ | 2,475 | ||||||||
| Jan. | 10 | Sales | 150 | units | @ $41.00 | |||||||||||
| Mar. | 14 | Purchase | 340 | units | @ $16.00 | = | 5,440 | |||||||||
| Mar. | 15 | Sales | 300 | units | @ $41.00 | |||||||||||
| July | 30 | Purchase | 425 | units | @ $21.00 | = | 8,925 | |||||||||
| Oct. | 5 | Sales | 395 | units | @ $41.00 | |||||||||||
| Oct. | 26 | Purchase | 125 | units | @ $26.00 | = | 3,250 | |||||||||
| Totals | 1,115 | units | $ | 20,090 | 845 | 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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Petroleum Accounting: Principles, Procedures; And Issues
Authors: Dennis Jennings, John Brady, Rich Shappard, Craig Friou
8th Edition
0940966328, 978-0940966321
