Solution-Compute the gross margin for fifo method and lifo

Compute the gross margin for fifo method and lifo method

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Reference no: EM132228183

Question - 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	300 units @ $14.00 = $4,200
Jan. 10	Sales		250 units @ $44.00
Mar. 14	Purchase	520 units @ $19.00 = 9,800
Mar. 15	Sales		460 units @ $44.00
July 30	Purchase	500 units @ $24.00 = 12,000
Oct. 5	Sales		480 units @ $44.00
Oct. 26	Purchase	200 units @ $29.00 = 5,800
Totals		1,520 units = $31,880	1,190 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.

Reference no: EM132228183

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Compute the gross margin for fifo method and lifo method

Reference no: EM132228183

Reference no: EM132228183

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