!Required information[The following information applies to the questions displayed below.]Hemming Co. reported the following current-year purchases and sales for its only product.ActivitiesUnits Acquired at Cost200 units @ $10DateUnits Sold at Retail1 Beginning inventory= $ 2,000Jan.Jan. 10 Sales150 units @ $40Mar.14 Purchase350 units @ $155,250Mar.15 Sales300 units@ $40July30 Purchase450 units @ $209,000Oct. 5 Sales430 units@ $40@ $252,500$18,750Oct.26 Purchase100 unitsTotals1,100 units880 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 margin for FIFO method and LIFO method.

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Description: !Required information[The following information applies to the questions displayed below.]Hemming Co. reported the following current-year purchases and sales for its only product.ActivitiesUnits Acquired at Cost200 units @ $10DateUnits Sold at Retai

Ending units = Total units available for sale - Total units sold = 1100 units - 880 units = 220…

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Hemming Co. reported the following current-year purchases and sales for its only product. Activities Units Acquired at Cost @ $10 Date Units Sold at Retail = $ 2,000 Jan. 1 Beginning inventory Jan.10 Sales 200 units 150 units e $40 Mar.14 Purchase 350 units @ $15 5,250 Mar.15 Sales 300 units @ $40 @ $20 July30 Purchase Oct. 5 Sales 450 units 9,000 430 units e $40 Oct.26 Purchase 100 units @ $25 2,500 Totals 1,100 units $18,750 880 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 margin for FIFO method and LIFO method.

Hemming Co. reported the following current-year purchases and sales for its only product. Activities Units Acquired at Cost @ $10 Date Units Sold at Retail = $ 2,000 Jan. 1 Beginning inventory Jan.10 Sales 200 units 150 units e $40 Mar.14 Purchase 350 units @ $15 5,250 Mar.15 Sales 300 units @ $40 @ $20 July30 Purchase Oct. 5 Sales 450 units 9,000 430 units e $40 Oct.26 Purchase 100 units @ $25 2,500 Totals 1,100 units $18,750 880 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 margin for FIFO method and LIFO method.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 33BE

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