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28 Sep 2019
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 230 units @ $11.20 = $ 2,576 Jan. 10 Sales 160 units @ $41.20 Mar. 14 Purchase 350 units @ $16.20 = 5,670 Mar. 15 Sales 320 units @ $41.20 July 30 Purchase 430 units @ $21.20 = 9,116 Oct. 5 Sales 400 units @ $41.20 Oct. 26 Purchase 130 units @ $26.20 = 3,406 Totals 1,140 units $ 20,768 880 units
Exercise 5-9A Periodic: Inventory costing system LO P3
Required:
Hemming uses a periodic inventory system.
(a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
(b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
(c) Compute the gross margin for each method.
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 | 230 | units | @ $11.20 | = | $ | 2,576 | ||||||||
| Jan. | 10 | Sales | 160 | units | @ $41.20 | |||||||||||
| Mar. | 14 | Purchase | 350 | units | @ $16.20 | = | 5,670 | |||||||||
| Mar. | 15 | Sales | 320 | units | @ $41.20 | |||||||||||
| July | 30 | Purchase | 430 | units | @ $21.20 | = | 9,116 | |||||||||
| Oct. | 5 | Sales | 400 | units | @ $41.20 | |||||||||||
| Oct. | 26 | Purchase | 130 | units | @ $26.20 | = | 3,406 | |||||||||
| Totals | 1,140 | units | $ | 20,768 | 880 | units | ||||||||||
Exercise 5-9A Periodic: Inventory costing system LO P3
Required:
Hemming uses a periodic inventory system.
(a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
(b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
(c) Compute the gross margin for each method.
Jarrod RobelLv2
28 Sep 2019
Related questions
| Hemming Co. reported the following current-year purchases and salesdata for its only product. |
| Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||||||
| Jan. | 1 | Beginning inventory | 120 | units | @ $10.80 | = | $ | 1,296 | ||||||||
| Jan. | 10 | Sales | 110 | units | @$40.80 | |||||||||||
| Mar. | 14 | Purchase | 270 | units | @ $15.80 | = | 4,266 | |||||||||
| Mar. | 15 | Sales | 160 | units | @$40.80 | |||||||||||
| July | 30 | Purchase | 420 | units | @ $20.80 | = | 8,736 | |||||||||
| Oct. | 5 | Sales | 280 | units | @$40.80 | |||||||||||
| Oct. | 26 | Purchase | 620 | units | @ $25.80 | = | 15,996 | |||||||||
| Totals | 1,430 | units | $ | 30,294 | 550 | units | ||||||||||
| | | | | | | |||||||||||
| Hemming uses a periodic inventory system. |
| (a) | Determine the costs assigned to ending inventory and to cost ofgoods sold using FIFO. |
| (b) | Determine the costs assigned to ending inventory and to cost ofgoods sold using LIFO. |
| (c) | Compute the gross margin for each method. I'm trying to do this in Excel, but my homework checkerkeeps telling me it's inccorrect. |
