Hemming Company reported the following current-year purchases and sales for its only product. Date Activities Units Acquired
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Question:
Hemming Company reported the following current-year purchases and sales for its only product.
Date | Activities | Units Acquired at Cost | Units Sold at Retail | ||||||
---|---|---|---|---|---|---|---|---|---|
January 1 | Beginning inventory | 220 | units | @ $10.80 | = | $ 2,376 | |||
January 10 | Sales | 190 | units | @ $40.80 | |||||
March 14 | Purchase | 330 | units | @ $15.80 | = | 5,214 | |||
March 15 | Sales | 280 | units | @ $40.80 | |||||
July 30 | Purchase | 420 | units | @ $20.80 | = | 8,736 | |||
October 5 | Sales | 390 | units | @ $40.80 | |||||
October 26 | Purchase | 120 | units | @ $25.80 | = | 3,096 | |||
Totals | 1,090 | units | $ 19,422 | 860 | 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 profit for FIFO method and LIFO method.
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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