Perpetual FIFO

Perpetual LIFO

Conpute gross margin for FIFO & LIFO method

(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 230 units $11.20 = $ 2,576 Units Sold at Retail 160 units @ $41.28 350 units $16.20 5,670 bate Activities Jan. 1 Beginning inventory an. 10 Sales Mar 14 Purchase Mar.15 Sales July 38 Purchase Octs Sales Oct 26 Purchase Totals 320 units @ $41.28 430 units @ $21.20 9, 116 400 units @ $41.29 130 units @ $26.28 1,148 units 3,406 $20,768 880 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 UFO method Perpetual FIFO Goods Purchased Cost units Cost of Goods Sold of units Cost Cost of Goods sold per unit Sold Date Inventory Balance Cost # of units Inventory per unit Balance 230 @ $ 11.20 $ 2,576.00 January 1 January 10 March 14 March 15 July 30 October 5 October 20 Totals $ Perpetual UFO Goods Purchased #ol per unit Cost of Goods Sold # of units Cost Cost of Goods sold Sold Inventory Balance Cost Inventory # of units Balance 230 @ $ 11.20 = $ 2,578.00 per unit Date per unit January 1 January 10 March 14 March 15 July 30 October 5 October 26 Totals 0.00 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 Compute the gross margin for FIFO method and LIFO method. FIFO LIFO Sales revenue Less: Cost of goods sold Gross margin