Use the following information for the Exercises $8-10$ below. $($Algo$)$

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

Date Activities Units Acquired at Cost Units Sold at Retail

January $1$ Beginning inventory $270$ units @ $$12\mathrm{.}80=$ $ $3,456$ 

January $10$ Sales $220$ units @ $$42\mathrm{.}80$

March $14$ Purchase $400$ units @ $$17\mathrm{.}80=7,120$ 

March $15$ Sales $340$ units @ $$42\mathrm{.}80$

July $30$ Purchase $470$ units @ $$22\mathrm{.}80=10,716$ 

October $5$ Sales $440$ units @ $$42\mathrm{.}80$

October $26$ Purchase $170$ units @ $$27\mathrm{.}80=4,726$ 

Totals $1,310$ units $ $26,0181,000$ units

Exercise $5-8($Algo$)$ Perpetual: Inventory costing methods$—$FIFO and LIFO LO P$1$

Required:

Hemming uses a perpetual inventory system.

Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.

Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.

Compute the gross profit for FIFO method and LIFO method.

 

Answer rating: 100% (QA)

Solution To determine the costs assigned to ending inventory and cost of goods sold using FIFO we need to follow the following steps 1 Identify the un... View the full answer