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Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 Activities Beginning inventory Sales Units Acquired at Cost @ $12.00 - @ $17.00 Purchase Sales July 30 Purchase @ $22.00 Sales Purchase Totals October 5 October 26 Required: Hemming uses a perpetual inventory system. 250 units 400 units 450 units 150 units 1,250 units $27.00 $ 3,000 6,800 9,900 4,050 $ 23,750 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. Units Sold at Retail 200 units 360 units 420 units 980 units @ $42.00 @ $42.00 @ $42.00

Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 Activities Beginning inventory Sales Units Acquired at Cost @ $12.00 - @ $17.00 Purchase Sales July 30 Purchase @ $22.00 Sales Purchase Totals October 5 October 26 Required: Hemming uses a perpetual inventory system. 250 units 400 units 450 units 150 units 1,250 units $27.00 $ 3,000 6,800 9,900 4,050 $ 23,750 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. Units Sold at Retail 200 units 360 units 420 units 980 units @ $42.00 @ $42.00 @ $42.00

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 13P: Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X,...
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Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 Activities Beginning inventory Sales Units Acquired at Cost @ $12.00 = March 14 Purchase @ $17.00 March 15 Sales July 30 October 5 @ $22.00 Purchase Sales October 26 Purchase @ $27.00 Totals Required: Hemming uses a perpetual inventory system. 250 units 400 units 450 units 150 units 1,250 units = = $ 3,000 6,800 9,900 4,050 $ 23,750 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. Units Sold at Retail 200 units 360 units 420 units 980 units @ $42.00 @ $42.00 @ $42.00
Transcribed Image Text:Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 Activities Beginning inventory Sales Units Acquired at Cost @ $12.00 = March 14 Purchase @ $17.00 March 15 Sales July 30 October 5 @ $22.00 Purchase Sales October 26 Purchase @ $27.00 Totals Required: Hemming uses a perpetual inventory system. 250 units 400 units 450 units 150 units 1,250 units = = $ 3,000 6,800 9,900 4,050 $ 23,750 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. Units Sold at Retail 200 units 360 units 420 units 980 units @ $42.00 @ $42.00 @ $42.00
January 1 January 10 Date March 14 Total March 14 March 15 Total March 15 July 30 Total July 30 October 5 Total October 5 October 26 Totals Goods Purchased # of units Cost per unit # of units sold Cost of Goods Sold Cost per unit Cost of Goods Sold # of units Inventory Balance Cost per unit Inventory Balance
Transcribed Image Text:January 1 January 10 Date March 14 Total March 14 March 15 Total March 15 July 30 Total July 30 October 5 Total October 5 October 26 Totals Goods Purchased # of units Cost per unit # of units sold Cost of Goods Sold Cost per unit Cost of Goods Sold # of units Inventory Balance Cost per unit Inventory Balance
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