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... 200 units @ $10 = $ 2,000 Jan. 10 Sales.... 150 units @ $40 Mar. 14 Purchase 350 units @ $15 = 5,250 Mar. 15 Sales... 300 units @ $40 July 30 Oct. 5 Oct. 26 Purchase Purchase 450 units @ $20 = 9,000 Sales... 430 units @ $40 100 units @ $25 = 2,500 %3D Totals 1,100 units $18,750 880 units

Question

Required
Hemming uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost
of goods sold using (a) FIFO and (b) LIFO. (c) Compute the gross margin for each method. (Round
amounts to cents.) SNIPP

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...
200 units @ $10 = $ 2,000
Jan. 10 Sales....
150 units @ $40
Mar. 14 Purchase
350 units @ $15 = 5,250
Mar. 15
Sales...
300 units @ $40
July 30
Oct. 5
Oct. 26 Purchase
Purchase
450 units @ $20 = 9,000
Sales...
430 units @ $40
100 units @ $25 = 2,500
%3D
Totals
1,100 units
$18,750
880 units
Expand
Transcribed Image Text

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... 200 units @ $10 = $ 2,000 Jan. 10 Sales.... 150 units @ $40 Mar. 14 Purchase 350 units @ $15 = 5,250 Mar. 15 Sales... 300 units @ $40 July 30 Oct. 5 Oct. 26 Purchase Purchase 450 units @ $20 = 9,000 Sales... 430 units @ $40 100 units @ $25 = 2,500 %3D Totals 1,100 units $18,750 880 units

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