Use the following information for the Exercises 8-10 below. (Algo) Hemming Company reported the following current-year purchases and sales for its only product.
Exercise 5-8 (Algo) Perpetual: Inventory costing methodsFIFO 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 profit for FIFO method and LIFO method.
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.. ! Required information Use the following information for the Exercises 8-10 below. (Algo) [The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost 240 units @ $11.60 = $ 2,784 180 units @ $41.60 370 units @ $16.60 = 6,142 Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase 330 units @ $41.60 440 units @ $21.60 = 9,504 415 units @ $41.60 @ $26.60 140 units 1,190 units 3,724 $ 22,154 Totals 925 units Exercise 5-8 (Algo) Perpetual: Inventory costing methods-FIFO and LIFO LO P1 Exercise 5-8 (Algo) 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 profit for FIFO method and LIFO method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 PIPO 8 Xnip Required 1 Required 2 Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: Cost of Goods Sold Date Goods Purchased Cost per # of units unit Cost per # of units sold Cost of Goods Sold Inventory Balance Cost per Inventory # of units unit Balance 240 at $ 11.60] = $ 2,784.00 unit January 1 January 10 180 at $ 11.60 = $ 2,088.00 60 at $ 11.60 = $ 696.00 370 at $ 16.60 March 14 60 at $ 11.60 = $ 696.00 370 at $ 16.60 = 6,142.00 $ 6,838.00 Total March 14 $ 11.60 $ 696.00 0 at $ 11.60 March 15 60 at 270 at $ 16.60 = 100 at $ 16.60 = 4,482.00 5,178.00 $ 1,660.00 $ 1,660.00 Total March 15 $ 440 at $ 21.60 July 30 ol at 100 at 4401 at $ 11.60 $ 16.60 = $ $ 21.60 = 1,660.00 9,504.00 Total July 30 $ 11,164.00 $ 11.60 = $ 0.00 0 at 100 at o at 0 at $ 11.60 $ 16.60 October 5 $ 16.60 = 1,660.00 at $ 21.60 = 0.00 at $ 21.60 Total October 5 $ 1,660.00 October 26 Totals $ 8,926.00 Xnip Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. Perpetual LIFO: Cost of Goods Sold # of units Cost per Cost of Goods sold unit Goods Purchased Cost per # of units unit Date Inventory Balance Cost per Inventory # of units Balance Sold unit January 1 January 10 March 14 Total March 14 March 15 Total March 15 July 30 Total July 30 October 5 Total October 5 October 26 Totals $ 0.00 Required 1 Required 2 Required 3 Compute the gross profit for FIFO method and LIFO method. FIFO LIFO Sales revenue Less: Cost of goods sold Gross profit
