Silawing current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Activities Units Acquired at Cost 285 units Beginning inventory Sales Purchase Sales Purchase Sales Units Sold at Retail @ $13.40= $ 3,819 470 units e $18.40- 250 units @ $43.40 8,648 485 units O $23.40- 11,349 400 units e $43.40 460 units O $43.40 Purchase Totals 185 units e $28.40- 5,254 $ 29,070 1,425 units 1,110 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.
Silawing current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Activities Units Acquired at Cost 285 units Beginning inventory Sales Purchase Sales Purchase Sales Units Sold at Retail @ $13.40= $ 3,819 470 units e $18.40- 250 units @ $43.40 8,648 485 units O $23.40- 11,349 400 units e $43.40 460 units O $43.40 Purchase Totals 185 units e $28.40- 5,254 $ 29,070 1,425 units 1,110 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.
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
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 11RE: Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year,...
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