[The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. DateActivitiesUnits Acquired at CostUnits Sold at Retail Jan.1 Beginning inventory 210units@ $10.40=$2,184 Jan.10 Sales 170units@ $40.40 Mar.14 Purchase 310units@ $15.40= 4,774 Mar.15 Sales 270units@ $40.40 July30 Purchase 410units@ $20.40= 8,364 Oct.5 Sales 380units@ $40.40 Oct.26 Purchase 110units@ $25.40= 2,794 Totals 1,040units $18,116 820units Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1Required: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: [The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. DateActivitiesUnits Acquired at CostUnits Sold at Retail Jan.1 Beginning inventory 210

FIFO: Under this method, units purchased initially were used in the production or sale. LIFO: Under…

Answered: The following information applies to…

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 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...

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[The following information applies to the questions displayed below.]

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.

Beginning inventory

210

units

@ $10.40

2,184

Jan.

Sales

170

units

@ $40.40

Mar.

Purchase

310

units

@ $15.40

4,774

Mar.

Sales

270

units

@ $40.40

July

Purchase

410

units

@ $20.40

8,364

Oct.

Sales

380

units

@ $40.40

Oct.

Purchase

110

units

@ $25.40

2,794

Totals

1,040

units

18,116

820

units

Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1

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.

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