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

240

units

@ $11.60

=

$

2,784

Jan.

10

Sales

180

units

@ $41.60

Mar.

14

Purchase

370

units

@ $16.60

=

6,142

Mar.

15

Sales

330

units

@ $41.60

July

30

Purchase

440

units

@ $21.60

=

9,504

Oct.

5

Sales

415

units

@ $41.60

Oct.

26

Purchase

140

units

@ $26.60

=

3,724

Totals

1,190

units

$

22,154

925

units

Exercise 5-10A (Algo) Perpetual: Inventory costing LO P3

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 profit for FIFO method and LIFO method.

Determine the costs assigned to ending Inventory and to cost of goods sold using FIFO. Cost per unit Cost of Goods Sold Cost per Cost of Goods # of units sold unit Sold Perpetual FIFO: Goods Purchased Date # of units January 1 January 10 March 14 Inventory Balance Cost per Inventory #of units unit Balance 2401 $ 11.60 = $ 2,784.00 March 15 July 30 October 5 October 26 Totals Determine the costs assigned to ending Inventory and to cost of goods sold using LIFO. Perpetual LIFO: Goods Purchased # of Cost units per unit Cost of Goods Sold Cost # of units Cost of Goods sold per unit Sold Date Inventory Balance Cost Inventory # of units per Balance 240 @ $11.60] = $ 2,784.00 unit January 1 January 10 March 14 March 15 July 30 October 5 October 26 Totals Compute the gross profit for FIFO method and LIFO method. FIFO: LIFO: Sales revenue Less: Cost of goods sold Gross profit