Share
Explore BrainMass

Inventory costing methods (perpetual) - FIFO and LIFO

Can you help me get started with this assignment?

Hemming Co. reported the following current-year purchases and sales data for its only product:
Date Activities Units Acquired at Cost Units sold at Retail
Jan. 1 Beg. Inventory 133 units @ $11=$1,463
Jan. 10 Sales 119 units @ $40
Mar. 14 Purchase 350 units @ $16=$5,600
Mar. 15 Sales 204 units @ $40
July 30 Purchase 574 units @ $21=$12,054
Oct. 5 Sales 430 units @ $40
Oct. 26 Purchase 862 units @ $26=$22,412

Totals 1,919 units $41,529 753 units

Requirement 1:
Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.

Date Cost of Goods Sold Inventory Balance
1/1 $ _______
1/10 $_________ $ _______
3/14 $ _______
3/15 $_________ $ _______
7/30 $ _______
10/5 $_________ $ _______
10/26 $ _______

Total $_________

Requirement 2:
Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.

Date Cost of Goods Sold Inventory Balance
1/1 $ _______
1/10 $_________ $ _______
3/14 $ _______
3/15 $_________ $ _______
7/30 $ _______
10/5 $_________ $ _______
10/26 $ _______

Total $_________

Requirement 3:
Compute the gross margin for FIFO and LIFO method.

FIFO Gross Margin $ _________
LIFO Gross Margin $ _________

Solution Summary

The expert examines inventory costing methods. The FIFO and LIFO is examined.

$2.19