Answered step by step
Verified Expert Solution
Question
1 Approved Answer
stuck, any help? (: Hemming Co. reported the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost
stuck, any help? (:
Hemming Co. reported the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost 270 units @ $12.80 = $3,456 220 units @ $42.80 400 units @ $17.80 7,120 340 units @ $42.80 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase Totals 470 units @ $22.80 = 10,716 440 units @ $42.80 170 units @ $27.80 = 1,310 units 4,726 $26, 018 1,000 units Exercise 6-9 A Periodic: Inventory costing system LO P3 6-6 Periodic: Income effects of inventory methods LO A16-5A Periodic: Inventory costing LO P3 Required: Hemming uses a periodic inventory system, (a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO (b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. (c) Compute the gross margin for each method. Required information Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale a) Periodic FIFO Cost Cost per Cost of Goods Available for Sale # of units Cost per sold unit # of units Cost of Goods Sold in ending inventory Ending Inventory #of units per unit unit Beginning inventory Purchases: March 14 July 30 October 26 0 $ 0 0 0 0 Total Ending Inventory b) Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Cost per Cost of Goods Available for Sale Cost of Goods Sold of units Cost per sold unit # of units in ending inventory of units Cost Ending per unit Inventory unit Beginning inventory Purchases: March 14 July 30 October 26 $ 0 Total 0 $ c) Gross Margin FIFO LIFO October 26 10 $ 0 $ Total FIFO LIFO c) Gross Margin Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started