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please help Hemming Company reported the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost 200 units
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Hemming Company reported the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost 200 units @ $10 350 units @ $15 = $ 2,000 5,250 150 units Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 @ $40 Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals 300 units @ $40 450 units @ $20 9,000 430 units @ $40 @ $25 100 units 1,100 units 2,500 $ 18,750 880 units Hemming uses a periodic inventory system. (a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO, (6) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. (c) Compute the gross profit for each method. a) Periodic FIFO Cost of Goods Available for Sale Cost per Cost of Goods # of units unit Available for Sale Cost of Goods Sold # of units Cost per Cost of sold unit Goods Sold Ending Inventory # of units Cost per Ending in ending unit Inventory Inventory Beginning inventory Purchases: March 14 July 30 October 26 Total 0 $ 0 0 b) Periodic LIFO Cost of Goods Available for Sale Cost of Goods Cost per of units unit Available for Cost of Goods Sold Ending Inventory # of units # of units Cost per Cost of Cost per Ending sold unit Goods Sold in ending unit Inventory lan July 30 October 26 Total $ 0 0 $ 0 0 $ 0 b) Periodic LIFO Cost of Goods Sold Cost of Goods Available for Sale Cost of Goods #of units unit Available for Sale Cost per # of units Cost per sold unit Cost of Goods Sold Ending Inventory # of units Cost per Ending In ending unit Inventory Inventory Beginning inventory Purchases: March 14 July 30 October 26 Total $ 0 0 $ 0 0 S c) Gross Profit FIFO LIFO Step by Step Solution
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