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Edit View History Huma × Conne × Secure l https://newconnect.mheducation.com/flow/connect.html Help Seve & Exit Required information The following information applies to the questions displayed below Hemming Co. reported the following current-year purchases and sales for its only product. Acquired at sold at Retail Jan. 1 Beginning inventory Jan.10 Sales Mar.14 Purchase Kar-15 Sales 245 units @ $11.80 S 2,891 390 units $16.80 6.552 445 units $21.809,701 4Sunite $26.803886 19o units . S41.80 350 unite $41.80 430 units $42.80 uly30 Purchase Oet.5 Sales Oct.26 Purchase Totals 1,225 units 23.030970 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 margin for FIFO method and LIFO method. Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Inventory Balanss Date cost perl # of units sold Cost per Cost of Goods Sold units Cost per Inventory January 1 Balance 245| : $ 11 eo|-| 2.891 00 January 1

Explanation / Answer

Perpetual inventory:

FIFO:

55 units * $11.80 = $649

390 units * $16.80 = $6552

55 units * $11.80 = $649

295 units * $16.80 = $4956

95 units * $16.80 = $1596

445 units * $21.80 = $9701

95units * $16.80 = $1596

335 units * $21.80 =$7303

110 units * $21.80 = $2398

145 units * $26.80 = $3886

LIFO:

55 units * $11.80 = $649

390 units * $16.80 = $6552

55 units * $11.80 =$649

40 units * $16.80 =$672

55 units * $11.80 = $649

40 units * $16.80 = $672

445 units * $21.80 = $9701

55 units * $11.80 = $649

40 units * $16.80 = $672

15 units * $21.80 = $327

55 units * $11.80 = $649

40 units * $16.80 = $672

15 units * $21.80 = $327

145 units * 26.80 = $3886

  

Date Cost of goods available for sale Cost of goods sold Ending inventory Jan 1 245 units * $11.80 = $2891 245 units * $11.80 = $2891 10 190 units * $11.80 = $2242 55 units * $11.80 = $649. Mar 14 390 units * $16.80 = $6552

55 units * $11.80 = $649

390 units * $16.80 = $6552

15

55 units * $11.80 = $649

295 units * $16.80 = $4956

95 units * $16.80 = $1596 Jul 30 445 units * $21.80 = $9701

95 units * $16.80 = $1596

445 units * $21.80 = $9701

Oct 5

95units * $16.80 = $1596

335 units * $21.80 =$7303

110 units * $21.80 = $2398 Oct 26 145 units * $26.80 = $3886

110 units * $21.80 = $2398

145 units * $26.80 = $3886

Cost of goods sold = $16746 Ending inventory = $6284.

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