Goods PurchasedCost of Goods SoldInventory BalanceDateCost perunitCost perCost perInventoryBalance# of units# of units soldCost of Goods Sold# of unitsunitunitJanuary 1January 10March 14Total March 14March 15Total March 15July 30Total July 30October 5Total October 5October 260.00Totals Hemming Company reported the following current-year purchases and sales for its only product.DateJanuary 1January 10March 14ActivitiesUnits Acquired at Cost285 unitsBeginning inventorySalesPurchaseSalesPurchaseUnits Sold at Retaile $13.40 =$ 3,819470 unitse $18.40 =250 units@ $43.40March 15July 30October 5October 268,648485 units@ $23.40 -400 unitse $43.4011,349SalesPurchase460 units@ $43.40185 unitse s28.40 =5,254$ 29,070Totals1,425 units1,110 unitsRequired: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 profit for FIFO method and LIFO method.

The LIFO and FIFO method are the most important methods of Inventory valuation. The FIFO method…

Silawing current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Activities Units Acquired at Cost 285 units Beginning inventory Sales Purchase Sales Purchase Sales Units Sold at Retail @ $13.40= $ 3,819 470 units e $18.40- 250 units @ $43.40 8,648 485 units O $23.40- 11,349 400 units e $43.40 460 units O $43.40 Purchase Totals 185 units e $28.40- 5,254 $ 29,070 1,425 units 1,110 units 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 profit for FIFO method and LIFO method.

Silawing current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Activities Units Acquired at Cost 285 units Beginning inventory Sales Purchase Sales Purchase Sales Units Sold at Retail @ $13.40= $ 3,819 470 units e $18.40- 250 units @ $43.40 8,648 485 units O $23.40- 11,349 400 units e $43.40 460 units O $43.40 Purchase Totals 185 units e $28.40- 5,254 $ 29,070 1,425 units 1,110 units 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 profit for FIFO method and LIFO method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cost Flow Methods The following three identical units of Item Alpha are purchased during April: Item Alpha Units Cost Apr. 2 Purchase 1 $145 14 Purchase 1 149 28 Purchase 153 Total 3 $447 Average cost per unit $149 ($4473 units) Assume that one unit is sold on April 30 for $215. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods. Gross Profit Ending Inventory a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost X
Activities Units Acquired at Cost 140 units Date Units sold at Retail e $ 6.00 - $ 840 January 1 January 10 January 20 January 25 January 30 Beginning inventory Sales 100 units e$ 15 Purchase Sales e $ 5.00 - 60 units 300 80 units e $ 15 180 units e $ 4.50- Purchase 810 380 units $ 1,950 180 units Totals Total cost of goods sold value and ending inventory value? LIFO method
Date January 1 January 3 February 14 February 15 June 30 November 6 November 19 Activities Beginning inventory Sales Purchase. Sales Purchase. Sales Purchase. Totals FIFO Units Acquired at Cost 190 units 300 units Periodic Inventory System 240 units 80 units 810 units @ $2 = $380 @$3-$900 @ $4$ 960 @$5$400 $ 2,648 Required A Required B Required C Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Ending Cost of Inventory Goods Sold Units Sold at Retail 122 units @ $8 @ $8 @ $8 210 units The company uses a periodic 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 profit for each method. Complete this question by entering your answers in the tabs below. 176 units 508 units
A-1
Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 150 units @ $ 7.50 = $ 1,125 Jan. 10 Sales 110 units @ $ 16.50 Jan. 20 Purchase 80 units @ $ 6.50 = 520 Jan. 25 Sales 90 units @ $ 16.50 Jan. 30 Purchase 200 units @ $ 6.00 = 1,200 Totals 430 units $ 2,845 200 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 230 units, where 200 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO. (Round cost per unit to 2 decimal places.) Required:
Provide solution of question number 4
Ending inventory value? Using LIFO proces Activities Units Acquired at Cost e $ 6.00- Date Units sold at Retail January 1 January 10 January 20 January 25 January 30 $ 840 Beginning inventory Sales Purchase Sales Purchase 140 units e $ 15 e $ 15 100 units 60 units e $ 5.00 - 300 80 units 180 units e $ 4.50 - 810 Totals 380 units $ 1,950 180 units
Date Activities Units Acquired at Cost Units Sold at Retail April 1 Beginning inventory 175 units @ $15 = $2,625 April 4 Purchase 150 units @ $16 = $2,400 April 7 Sales 160 units @ $30 April 10 Purchase 200 units @ $17 = $3,400 April 16 Sales 250 units @ $30 April 25 Purchase 160 units @ $18 = $2,880 April 28 Sales 150 units @ $32 A. Determine the cost assigned to ending inventory and cost of goods sold using FIFO. B. Determine the cost assigned to ending inventory and cost of goods sold using LIFO