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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. Units Acquired at

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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. Units Acquired at Cost 200 units @ $10 - $ 2,000 Units Sold at Retail 150 units @ $40 350 units @ $15 5,250 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar.15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase Total 300 units @ $40 450 units @ $20 9,000 430 units @ $40 @ $25 100 units 1,100 units 2,500 $18,750 880 units 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. Cost per # of units # of units sold # of units Cost of Goods Sold Cost per unit Date unit 200 @ $ 10.00 150 @ 50] @ $ 1,500.00 January 1 January 10 March 14 Cost per Inventory unit Balance $ 10.00 - $ 2,000.00 $ 10.00 - $ 500.00 $ 10.00 = $ 500.00 $15.00 = 5,250,00 $ 5,750.00 50 @ $ 15.00 350 @ 350 @ $ March 15 50 @ 250 @ $10.00 $ 15.00 500.00 3,750.00 $ 4,250.00 $ 10.00 - $ 15.00 = = 100 @ $ 1,500.00 $ 1,500.00 July 30 October 5 October 26 Totals $ 5,750.00 (The following information applies to the questions displayed below.) Hemming Co. reported the following current-year purchases and sales for its only product. Units Acquired at Cost 200 units @ $10 - $ 2,000 Units Sold at Retail 150 units @ $40 350 units @ $15 5,250 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar.15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase Total 300 units @ $40 450 units @ $20 9,000 430 units @ $40 @ $25 100 units 1,100 units 2,500 $18,750 880 units 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. Cost per # of units # of units sold # of units Cost of Goods Sold Cost per unit Date unit 200 @ $ 10.00 150 @ 50] @ $ 1,500.00 January 1 January 10 March 14 Cost per Inventory unit Balance $ 10.00 - $ 2,000.00 $ 10.00 - $ 500.00 $ 10.00 = $ 500.00 $15.00 = 5,250,00 $ 5,750.00 50 @ $ 15.00 350 @ 350 @ $ March 15 50 @ 250 @ $10.00 $ 15.00 500.00 3,750.00 $ 4,250.00 $ 10.00 - $ 15.00 = = 100 @ $ 1,500.00 $ 1,500.00 July 30 October 5 October 26 Totals $ 5,750.00

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