Required information Skip to question [The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 195 units @ $13.80 = $ 2,691 Jan. 10 Sales 185 units @ $43.80 Mar. 14 Purchase 345 units @ $18.80 = 6,486 Mar. 15 Sales 235 units @ $43.80 July 30 Purchase 495 units @ $23.80 = 11,781 Oct. 5 Sales 205 units @ $43.80 Oct. 26 Purchase 695 units @ $28.80 = 20,016 Totals 1,730 units $ 40,974 625 units Required: Hemming uses a perpetual inventory system. Compute the gross margin for FIFO method. Sales revenue Less: Cost of goods sold Gross margin Compute the gross margin for LIFO method. Sales revenue Less: Cost of goods sold Gross margin
Required information Skip to question [The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 195 units @ $13.80 = $ 2,691 Jan. 10 Sales 185 units @ $43.80 Mar. 14 Purchase 345 units @ $18.80 = 6,486 Mar. 15 Sales 235 units @ $43.80 July 30 Purchase 495 units @ $23.80 = 11,781 Oct. 5 Sales 205 units @ $43.80 Oct. 26 Purchase 695 units @ $28.80 = 20,016 Totals 1,730 units $ 40,974 625 units Required: Hemming uses a perpetual inventory system. Compute the gross margin for FIFO method. Sales revenue Less: Cost of goods sold Gross margin Compute the gross margin for LIFO method. Sales revenue Less: Cost of goods sold Gross margin
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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. |
| Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||||||
| Jan. | 1 | Beginning inventory | 195 | units | @ $13.80 | = | $ | 2,691 | ||||||||
| Jan. | 10 | Sales | 185 | units | @ $43.80 | |||||||||||
| Mar. | 14 | Purchase | 345 | units | @ $18.80 | = | 6,486 | |||||||||
| Mar. | 15 | Sales | 235 | units | @ $43.80 | |||||||||||
| July | 30 | Purchase | 495 | units | @ $23.80 | = | 11,781 | |||||||||
| Oct. | 5 | Sales | 205 | units | @ $43.80 | |||||||||||
| Oct. | 26 | Purchase | 695 | units | @ $28.80 | = | 20,016 | |||||||||
| Totals | 1,730 | units | $ | 40,974 | 625 | units | ||||||||||
Required:
| Hemming uses a perpetual inventory system. |
|
Compute the gross margin for FIFO method. |
Sales revenue
Less: Cost of goods sold
Gross margin
Compute the gross margin for LIFO method.
Sales revenue
Less: Cost of goods sold
Gross margin
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