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I need FIFO and LIFO [The following information applies to the questions displayed below.) Hemming Co. reported the following current-year purchases and sales for its
I need FIFO and LIFO
[The following information applies to the questions displayed below.) Hemming Co. reported the following current-year purchases and sales for its only product. Units Acquired at Cost 265 units @ $12.60 = $ 3,339 Units Sold at Retail 225 units @ $42.60 430 units @ $17.60 = 7.568 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 465 units @ $22.60 = 10,509 370 units @ $42.60 440 units @ $42.60 = 165 units @ $27.60 1.325 units 4,554 $25,970 1,035 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. Perpetual FIFO: Goods Purchased Cost of Goods Sold Inventory Balance Date # of Cost per # of units Cost per Cost of Goods # of units Cost per Inventory units unit sold unit unit Balance January 1 265 @ $ 12.60 = $ 3,339.00 January 10 OD March 14 Sold March 15 July 30 October 5 October 26 Totals $ 0.00 FIFO: LIFO: Sales revenue Less: Cost of goods sold Gross marginStep by Step Solution
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