Required information

Use the following information for the Exercises below.

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[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

290

units

@ $13.60

=

$

3,944

Jan.

10

Sales

260

units

@ $43.60

Mar.

14

Purchase

500

units

@ $18.60

=

9,300

Mar.

15

Sales

430

units

@ $43.60

July

30

Purchase

490

units

@ $23.60

=

11,564

Oct.

5

Sales

470

units

@ $43.60

Oct.

26

Purchase

190

units

@ $28.60

=

5,434

Totals

1,470

units

$

30,242

1,160

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.

• Required 1
• Required 2
• Required 3

Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.

Perpetual FIFO:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

January 1

290

@

$13.60

=

$3,944.00

January 10

March 14

March 15

July 30

October 5

October 26

Totals