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Wk 2 - Practice: Connect Knowledge Check [due Day 5]

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[The following information applies to the questions displayed below.]

Hemming Co. reported the following current-year purchases and sales for its only product.

DateActivitiesUnits Acquired at CostUnits Sold at RetailJan.1Beginning inventory250units@ $12.00=$3,000Jan.10Sales200units@ $42.00Mar.14Purchase400units@ $17.00=6,800Mar.15Sales360units@ $42.00July30Purchase450units@ $22.00=9,900Oct.5Sales420units@ $42.00Oct.26Purchase150units@ $27.00=4,050Totals1,250units$23,750980units

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 margin for FIFO method and LIFO method.

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