Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[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

image text in transcribed
image text in transcribed
image text in transcribed
[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 July30 Purchase 450 units 9,900 $22.00 Oct. 5 Sales @ 420 units $42.00 Oct.26 Purchase 150 units $27.00 4,050 Totals 1,250 units $23,750 980 units Required: Hemming uses a perpetual inventory system. 2 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. + Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using UFO. Perpetual LIFO: Goods Purchased Cost per Cost of Goods Sold #of units Cost per Cost of Goods sold Sold # of units Date unit unit unit Inventory Balance of units Cost per Inventory Balance 250 $12.00 $ 3,000.00 $ 12.00 January 1 January 10 200 $ 12.00 = $ 240000 Goods Purchased #of units unit Cost per Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Date January 1 January 10 March 14 200 @ $12.00 = $ 2,400.00 400 @ $ 17.00 Inventory Balance Cost per Inventory # of units unit Balance 250 $ 12.00 - $3,000.00 $ 12.00 = @ $12.00 400 @ $ 17.00 = 6,800.00 $ 6,800.00 $ 12.00 = @ $ 17.00 = March 15 $ 12.00 $ 0.00 3601 $ 17.00 = 6,120.00 $ 6,120.00 July 30 450 @ $ 22.00 $ 12.00 @ @ $ 17.00 $ 22.00 4501 9,900.00 $ 9,900.00 - October 5 $ 0.00 $ 12.00 $12.00 $ 17.00 $ 22.00 0.00 @ @ @ $ 17.00 420 $ 22.00 9,240,00 $ 9,240.00 October 26 150 $ 27.00 $ 12.00 $ 17.00 $22.00 $ 27.00 150 @ Totals $ 17,760.00 4,050.00 $ 4.050.00

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

Step: 3

blur-text-image

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

Communication And Auditing A Step By Step Guide

Authors: Melanie McKay, Elizabeth Rosa

1st Edition

075931652X, 978-0759316522

More Books

Students also viewed these Accounting questions