Hemming Co. reported the following current-year purchases and sales for its only product. ...
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Accounting
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.
1
Beginning inventory
210
units
@ $10.40
=
$
2,184
Jan.
10
Sales
170
units
@ $40.40
Mar.
14
Purchase
310
units
@ $15.40
=
4,774
Mar.
15
Sales
270
units
@ $40.40
July
30
Purchase
410
units
@ $20.40
=
8,364
Oct.
5
Sales
380
units
@ $40.40
Oct.
26
Purchase
110
units
@ $25.40
=
2,794
Totals
1,040
units
$
18,116
820
units
Hemming uses a periodic inventory system. (a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. (b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. (c) Compute the gross margin for each method.
Answer & Explanation
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