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 Company reported the following current-year purchases and sales for its only product Units

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information (The following information applies to the questions displayed below.) Hemming Company reported the following current-year purchases and sales for its only product Units sold at Retail Units Acquired at Cost 235 units $11.40 - $ 2,679 170 unita # $41.40 360 unito e $16.40 5,904 Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals 290 units # $41.40 435 units $21.40 - 9,309 410 units 341.40 135 units e $26.40 - 3,566 $ 21,456 1.165 units 870 unita 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 profit for FIFO method and LIFO method. Perpetual FIFO Cost of Goods Sold # of units sold Cost per Cost of Goods Sold unit Date Goods Purchased Cost per # of units unit Cost per Inventory Balance # of units Inventory unit Balance 235 at $ 11.40 $ 2,679,00 January 1 January 10 170 at $ 41.40 7,038.00 $ 11,40 360 at $ 16.40 at $ 11.40 March 14 Total March 14 at $ 16.40 290 March 15 $ 11.40 $ 16,40 = 290 Total March 15 435) at $ 21.40 at July 30 at at $11.40 $ 16,40 $ 21.40 Total July 30 410 October 5 0 0 Total October 5 135) at $ 26.40 October 26 at $ 26.40 $ Totals 7,038.00 Perpetual LIFO: Cost of Goods Sold # of units Cost of Goods sold unit Sold Goods Purchased Cost per # of units unit Date Cost per Inventory Balance Cost per Inventory #of units unit Balance January 1 January 10 March 14 Total March 14 March 15 Total March 15 July 30 Total July 30 October 5 Total October 5 October 26 $ 0.00 Totals 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 profit for FIFO method and LIFO method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the gross profit for FIFO method and LIFO method. FIFO LIFO Sales revenue Less: Cost of goods sold Gross profit

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_2

Step: 3

blur-text-image_3

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

Bookkeeping And Accounting

Authors: Greg Shields

1st Edition

1983673536, 978-1983673535

More Books

Students also viewed these Accounting questions