[The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 July 30 October 5 Purchase Sales Activities Beginning inventory 250 units Units Acquired at Cost @ $12.00 = Units Sold at Retail $ 3,000 Sales 200 units @ $42.00 400 units 450 units @ $17.00 @ $22.00 = 6,800 360 units @ $42.00 = 9,900 420 units @ $42.00 150 units 1,250 units @ $27.00 = 4,050 $ 23,750 980 units Purchase Sales Purchase October 26 Totals 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.
[The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 July 30 October 5 Purchase Sales Activities Beginning inventory 250 units Units Acquired at Cost @ $12.00 = Units Sold at Retail $ 3,000 Sales 200 units @ $42.00 400 units 450 units @ $17.00 @ $22.00 = 6,800 360 units @ $42.00 = 9,900 420 units @ $42.00 150 units 1,250 units @ $27.00 = 4,050 $ 23,750 980 units Purchase Sales Purchase October 26 Totals 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.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
Hemming Company reported the following current-year purchases and sales for its only product.
Activities
Date
January 1
Beginning inventory
Units Acquired at Cost
250 units @ $12.00
Units Sold at Retail
=
$ 3,000
January 10
Sales
200 units
@ $42.00
March 14
March 15
July 30
October 5
Purchase
Sales
Purchase
Sales
400 units
@ $17.00
=
6,800
360 units
@ $42.00
450 units
@ $22.00 =
9,900
420 units
@ $42.00
October 26
Purchase
Totals
150 units
1,250 units
@ $27.00 =
4,050
$ 23,750
980 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd2c41e17-1f80-46d4-a762-0697cf5be08f%2F2084d87a-7e1f-4cd7-a4c5-5e83a12c980c%2Fedcugno_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Hemming Company reported the following current-year purchases and sales for its only product.
Activities
Date
January 1
Beginning inventory
Units Acquired at Cost
250 units @ $12.00
Units Sold at Retail
=
$ 3,000
January 10
Sales
200 units
@ $42.00
March 14
March 15
July 30
October 5
Purchase
Sales
Purchase
Sales
400 units
@ $17.00
=
6,800
360 units
@ $42.00
450 units
@ $22.00 =
9,900
420 units
@ $42.00
October 26
Purchase
Totals
150 units
1,250 units
@ $27.00 =
4,050
$ 23,750
980 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.
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