Hemming Company reported the following current-year purchases and sales for its only product. Date January 1...
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Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 Activities Beginning inventory Units Acquired at Cost 270 units @ $12.80 = Units Sold at Retail $ 3,456 March 14 March 15 Sales Purchase Sales 220 units @ $42.80 400 units @ $17.80 = 7,120 340 units @ $42.80 July 30 Purchase 470 units October 5 October 26 Sales Purchase Totals 170 units 1,310 units @ $22.80 = @ $27.80 = 10,716 440 units @ $42.80 4,726 $ 26,018 1,000 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. Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 Activities Beginning inventory Units Acquired at Cost 270 units @ $12.80 = Units Sold at Retail $ 3,456 March 14 March 15 Sales Purchase Sales 220 units @ $42.80 400 units @ $17.80 = 7,120 340 units @ $42.80 July 30 Purchase 470 units October 5 October 26 Sales Purchase Totals 170 units 1,310 units @ $22.80 = @ $27.80 = 10,716 440 units @ $42.80 4,726 $ 26,018 1,000 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.
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Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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