Hemming Co. reported the following current year purchases and sales for its one product.(This is all a
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Question:
Hemming Co. reported the following current year purchases and sales for its one product. (This is all a question)
Date | Activities | Units Acquired at Cost | Retail Units | |||||||||||||
Ene. | 1 | Initial inventory | 250 | units | @ $12.00 | = | ps | 3,000 | ||||||||
Ene. | 10 | Sales | 200 | units | @ $42.00 | |||||||||||
Mar. | 14 | Purchase | 400 | units | @ $17.00 | = | 6,800 | |||||||||
Mar. | 15 | Sales | 360 | units | @ $42.00 | |||||||||||
Julio | 30 | Purchase | 450 | units | @ $22.00 | = | 9,900 | |||||||||
Oct. | 5 | Sales | 420 | units | @ $42.00 | |||||||||||
Oct. | 26 | Purchase | 150 | units | @ $27.00 | = | 4,050 | |||||||||
Totals | 1,250 | units | ps | 23,750 | 980 | units |
Required :
Hemming uses a perpetual inventory system.
1. Determine costs allocated to ending inventory and cost of goods sold using FIFO.
2. Determine costs allocated to ending inventory and cost of goods sold using LIFO.
3. Calculate the gross margin for the FIFO method and the LIFO method.
Determine the costs allocated to ending inventory and cost of goods sold using FIFO.
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Determine the costs allocated to ending inventory and cost of goods sold using LIFO.
Calculate the gross margin for the FIFO method and the 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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