Question: Exercise 5-9A Periodic: Inventory costing LO P3 Hemming Co. reported the following current-year purchases and sales data for its only product. Date Activities Units Acquired
Exercise 5-9A Periodic: Inventory costing LO P3
| Hemming Co. reported the following current-year purchases and sales data for its only product. |
| Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||||||
| Jan. | 1 | Beginning inventory | 125 | units | @ $11.00 | = | $ | 1,375 | ||||||||
| Jan. | 10 | Sales | 115 | units | @$41.00 | |||||||||||
| Mar. | 14 | Purchase | 275 | units | @ $16.00 | = | 4,400 | |||||||||
| Mar. | 15 | Sales | 165 | units | @$41.00 | |||||||||||
| July | 30 | Purchase | 425 | units | @ $21.00 | = | 8,925 | |||||||||
| Oct. | 5 | Sales | 275 | units | @$41.00 | |||||||||||
| Oct. | 26 | Purchase | 625 | units | @ $26.00 | = | 16,250 | |||||||||
| Totals | 1,450 | units | $ | 30,950 | 555 | units | ||||||||||
| Hemming uses a periodic inventory system. |
| (a) | Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. |
| (b) | Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. |
| (c) | Compute the gross margin for each method. |
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock