Hemming Co. reported the following current year purchases and sales for its only product. Required Hemming uses
Question:
Hemming Co. reported the following current year purchases and sales for its only product.
Required
Hemming uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using
(a) FIFO
(b) LIFO.
(c) Compute the gross profit for each method.
Transcribed Image Text:
Date Jan. 1 Jan. 10 Mar. 14 Mar. 15 July 30 Oct. 5 Oct. 26 Activities Beginning inventory.... Sales..... Purchase Sales.... Purchase Sales... Purchase Totals. .... Units Acquired at Cost 200 units @ $10 = $ 2,000 350 units @ $15= 5,250 450 units @ $20= 9,000 100 units @ $25= 2,500 $18,750 1,100 units Units Sold at Retall 150 units @ $40 300 units @ $40 430 units @ $40 880 units
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