Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units...
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Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Sold at Retail Units Acquired at Cost 200 units @ $10 = $2,000 Jan. 1 Beginning inventory Jan.10 Sales 150 units @ $40 Mar.14 Purchase 350 units @ $15 = 5,250 Mar.15 Sales 300 units @ $40 July30 Purchase 450 units @ $20 = 9,000 Oct. 5 Sales 430 units @ $40 Oct.26 Purchase @ $25 = 100 units 1,100 units 2,500 $18,750 Totals 880 units Required: 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. Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Sold at Retail Units Acquired at Cost 200 units @ $10 = $2,000 Jan. 1 Beginning inventory Jan.10 Sales 150 units @ $40 Mar.14 Purchase 350 units @ $15 = 5,250 Mar.15 Sales 300 units @ $40 July30 Purchase 450 units @ $20 = 9,000 Oct. 5 Sales 430 units @ $40 Oct.26 Purchase @ $25 = 100 units 1,100 units 2,500 $18,750 Totals 880 units Required: 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.
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a Determine the cost assigned to the ending inventory and to cost of goods sold using FIFO A B D E F ... View the full answer
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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