Question
Required information Use the following information for the Exercises below. Skip to question [The following information applies to the questions displayed below.] Hemming Co. reported
Required information
Use the following information for the Exercises below.
Skip to question
[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 | 300 | units | @ $14.00 | = | $ | 4,200 | ||||||||
| Jan. | 10 | Sales | 250 | units | @ $44.00 | |||||||||||
| Mar. | 14 | Purchase | 520 | units | @ $19.00 | = | 9,880 | |||||||||
| Mar. | 15 | Sales | 460 | units | @ $44.00 | |||||||||||
| July | 30 | Purchase | 500 | units | @ $24.00 | = | 12,000 | |||||||||
| Oct. | 5 | Sales | 480 | units | @ $44.00 | |||||||||||
| Oct. | 26 | Purchase | 200 | units | @ $29.00 | = | 5,800 | |||||||||
| Totals | 1,520 | units | $ | 31,880 | 1,190 | units | ||||||||||
Exercise 6-7 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.
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Auditing The Art and Science of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser
12th Canadian edition
133098230, 978-0132791564, 132791560, 978-0133098235
