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# Inventory costing methods (perpetual) - FIFO and LIFO

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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 \$ _________