Required information

Use the following information for the Exercises below.

[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

Units Sold at Retail

Jan.

1

Beginning inventory

250

units

@ $12.00

=

$

3,000

Jan.

10

Sales

200

units

@ $42.00

Mar.

14

Purchase

400

units

@ $17.00

=

6,800

Mar.

15

Sales

360

units

@ $42.00

July

30

Purchase

450

units

@ $22.00

=

9,900

Oct.

5

Sales

420

units

@ $42.00

Oct.

26

Purchase

150

units

@ $27.00

=

4,050

Totals

1,250

units

$

23,750

980

units

Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1

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.

1)

2)

3)

Goods Purchased Cost of Goods Sold Inventory Balance Cost per Cost of Goods unit Cost per unit # of units Cost per unit #of units sold Inventory Balance # of units Date Sold $12.00 3,000.00 250 January 1 a 250 January 10 March 14 March 15 July 30 October 5 October 26 $ 0.00 Totals Goods Purchased Cost of Goods Sold Inventory Balance Cost per unit Cost of Goods Sold Cost per unit #of units Cost per unit #of units sold Inventory Balance # of units Date 12,00 January 1 250 3,000.00 January 10 March 14 March 15 July 30 October 5 October 26 $ 0.00 Totals FIFO: LIFO: Sales revenue Less: Cost of goods sold Gross margin