Use the following information for the Exercises below The folowing intormation a
ID: 2518435 • Letter: U
Question
Use the following information for the Exercises below The folowing intormation applies to the questions dispkayed below Hemming Co reported the folowing current-year purchases and sales for its only proot Units Sold at Rea 220 unts $42 80 340 units $42.80 440 units $42 80 Begihning eventory 230 unts $12.80$3.456 Jan 10 Sales July 30 Purchase Oct 25 Purchase 00 unit $27804726 26.018 1000 unts Use the following information for the Exercises below Section Break 3. Award: 2.50 points Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P Required Hemming uses a perpetual inventory system 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFC 2. Determine the costs assigned to ending inventory and to cost of goods sold vaing UPO 3. Compute the gross margin for FIFO method and LiFO methodExplanation / Answer
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 270 12.8 3456 10-Jan 220 12.8 2816 50 12.8 640 14-Mar 400 17.8 7120 50 12.8 640 400 17.8 7120 15-Mar 50 12.8 640 290 17.8 5162 110 17.8 1958 30-Jul 470 22.8 10716 110 17.8 1958 470 22.8 10716 5-Oct 110 17.8 1958 330 22.8 7524 140 22.8 3192 26-Oct 170 27.8 4726 140 22.8 3192 170 27.8 4726 TOTAL 1040 22562 1000 18100 310 7918 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Jan 270 12.8 3456 10-Jan 220 12.8 2816 50 12.8 640 14-Mar 400 17.8 7120 50 12.8 640 400 17.8 7120 15-Mar 340 17.8 6052 50 12.8 640 60 17.8 1068 30-Jul 470 22.8 10716 50 12.8 640 60 17.8 1068 470 22.8 10716 5-Oct 440 22.8 10032 50 12.8 640 60 17.8 1068 30 22.8 684 26-Oct 170 27.8 4726 50 12.8 640 60 17.8 1068 30 22.8 684 170 27.8 4726 TOTAL 1040 22562 1000 18900 310 7118 COGS Ending Inventory FIFO 18100 7918 LIFO 18900 7118 Gross profit: FIFO LIFO Sales revenue (1000*42.80) 42800 42800 Less: COGS 18100 18900 Gross profit: 24700 23900