Hemming uses a perpetual inventory system.
Required information [The following information applies to the questions displayed below.) Hemming Co. reported the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost 250 units @ $12.00 = $ 3,000 200 units @ $42.00 400 units @ $17.00 = 6,800 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase Totals 360 units @ $42.00 450 units @ $22.00 = 9,900 420 units @ $42.00 @ $27.00 = 1,250 units 150 units 1,250 units 4,050 $23,750 $23,750 980 units 980 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. Complete this questions by entering your answers in the below tabs. 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 per units unit Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Date January 1 January 10 200 @ $ 12.00 = $ 2,400.00 March 14 400 @ $ 17.00 Inventory Balance # of units Cost per Inventory unit Balance 250 @ $ 12.00 = $3,000.00 50 @ $ 12.00 = $ 600.00 50 @ $12.00 = S 600.00 400 @ $ 17.00 = 6,800.00 $ 7,400.00 @ $ 12.00 = 90 @ $ 17.00 = $ 1,530.00 $ 1,530.00 90 @ $ 12.00 = $ 1,080.00 450 @ $ 17.00 = 7,650.00 @ $ 22.00 $ 8,730.00 March 15 50 @ 310) @ $ 12.00 $ 17.00 = = $ 600.00 5,270.00 $ 5,870.00 July 30 450 @ $ 22.00 October 5 90 330 @ @ $ 17.00 $ 22.00 = = 5,610.00 0.00 $ 5,610.00 @ @ $ 17.00 $ 22.00 = 120 2,640.00 2,640.00 $ October 26 150 @ $ 27.00 120 150 @ @ @ $ 17.00 $ 22.00 $27.00 = 2,640.00 4,050.00 6,690.00 Totals $ 13,880.00 $ Required information [The following information applies to the questions displayed below.) Hemming Co. reported the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost 250 units @ $12.00 = $ 3,000 200 units @ $42.00 400 units @ $17.00 = 6,800 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase 360 units @ $42.00 450 units @ $22.00 = 9,900 420 units @ $42.00 = 150 units @ $27.00 1,250 units 4,050 $23,750 Totals 980 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. Complete this questions by entering your answers in the below tabs. 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 per units unit Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Date January 1 Inventory Balance # of units Cost per Inventory unit Balance 250 @ $ 12.00 = $ 3.000.00 500 @ $ 12.00 = $ 600.00 @ $ 12.00 @ $ 17.00 January 10 200 @ $ 12.00 = $ 2,400.00 March 14 400 @ $ 17.00 March 15 July 30 October 5 October 26 Totals $ 2,400.00 Required 1 Required 3 >
