Hemming Company reported the following current-year purchases and sales for its only product.
Date Activities Units Acquired at Cost Units Sold at Retail
January 1 Beginning inventory 250 units @ $12.00 = $ 3,000 200 units @ $42.
January 10 Sales
March 14 Purchase 400 units @ $17.00 = 6,800
March 15 Sales 360 units @ $42.
July 30 Purchase 450 units @ $22.00 = 9,900
October 5 Sales 420 units @ $42.
October 26 Purchase 150 units @ $27.00 = 4,050
Totals 1,250 units $ 23,750 980 units
Exercise 5-8 (Algo) 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 profit for FIFO method and LIFO method.
Complete this question by entering your answers in the tabs below.
