Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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. Date

image text in transcribed
image text in transcribed
image text in transcribed
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. Date Activities Units Acquired at Cost Jan. 1 Beginning inventory Units sold at Retail 275 units @ $13.00 - $ 3,575 Jan. 10 Sales 230 units @ $43.00 Mar. 14 Purchase 450 units @ $18.00 - 8,100 Mar. 15 Sales 400 units @ $43.00 July30 Purchase 475 units @ $23.00 - 10,925 Oct. S Sales 455 units @ $43.00 Oct.26 Purchase 175 units @ $28.00 - 4,900 Totals 1,375 units $27,500 1,085 units Required: Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 45 units from the March 14 purchase, 70 units from the July 30 purchase, and all 175 units from the October 26 purchase. Using the specific identification method, calculate the following a) Cost of Goods Sold using Specific Identification Available for Sale Cost of Goods Sold Date Activity Units Unit Cost Units Sold Unit Cost COGS 0 0 Jan. 1 Mar. 14 July 30 Oct 26 Beginning Inventory Purchase Purchase Purchase 275 450 475 175 1,375 $ 0.00 $ S 0.00 $ 0.00 $ 0.00 $ Ending Inventory Ending Ending Inventory Unit Cost Inventory Units Cost $ 0.00 $ 0 $ 0.00 0 $ 0.00 0 $ 0 0 $ 0 0 0.00 $ 0 0 b) Gross Margin using Specific Identification Sales Less: Cost of goods sold Equal Gross margin a) Periodic FIFO Cost of Goods Sold Cost of Goods Available for Sale Cost per Cost of Goods #of units Available for unit Sale Ending Inventory # of units Cost Ending In ending Inventory per unit inventory # of units Cost per sold unit Cost of Goods Sold Beginning inventory Purchases: March 14 July 30 October 26 Total $ 0 0 b) Periodic LIFO Cost of Goods Sold Cost of Goods Available for Sale Cost per Cost of Goods # of units Available for unit Sale # of units Cost per sold unit Cost of Goods Sold Ending Inventory # of units Cost In ending Ending Inventory Inventory per unit Beginning inventory Purchases: March 14 July 30 October 26 Total 0 $ 0 0 $ c) Gross Margin FIFO LIFO

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach Chapters 1-25

Authors: Jeffrey Slater

12th Edition

013277206X, 978-0132772068

More Books

Students also viewed these Accounting questions