Question

Hemming Co. repo

Date

Activities

Units Acquired at Cost

Units Sold at Retail

 

Jan.

1

 

Beginninginventory

 

140

units

@ $11.60

=

$

1,624

 

 

 

 

 

 

Jan.

10

 

Sales

 

 

 

 

 

 

 

 

130

units

@$41.60

 

 

Mar.

14

 

Purchase

 

290

units

@ $16.60

=

 

4,814

 

 

 

 

 

 

Mar.

15

 

Sales

 

 

 

 

 

 

 

 

180

units

@$41.60

 

 

July

30

 

Purchase

 

440

units

@ $21.60

=

 

9,504

 

 

 

 

 

 

Oct.

5

 

Sales

 

 

 

 

 

 

 

 

260

units

@$41.60

 

 

Oct.

26

 

Purchase

 

640

units

@ $26.60

=

 

17,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals

 

1,510

units

 

 

$

32,966

 

570

units

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

 

Required:

Hemming uses aperiodic inventory system.

 

(a)

Determine the costs assigned to ending inventory and to cost ofgoods sold using FIFO.

(b)

Determine thecosts assigned to ending inventory and to cost of goods sold usingLIFO.

(c)

Compute thegross margin for each method.

rted the following current-year purchases and sales data for itsonly product.

 

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