# Determine the costs assigned to ending inventory and

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Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.3
Perpetual FIFO:Goods PurchasedCost of Goods SoldInventory BalanceDate# of unitsCost perunit# of unitssoldCost perunitCost of GoodsSold# of unitsCost perunitInventoryBalanceJanuary 1200@\$14.00=\$2,800.00January 10190@\$14.00=\$2,660.0010@\$14.00=\$140.00March 14350@ \$19.0010@\$14.00=\$140.00350@\$19.00=6,650.00\$6,790.00March 1510@\$14.00=\$140.00@\$14.00=230@\$19.00=4,370.00120@\$19.00=\$2,280.00\$4,510.00\$2,280.00July 30500@ \$24.00@\$14.00120@\$19.00=2,280.00500@\$24.00=12,000.00\$14,280.00October 5@\$14.00=\$0.00@\$14.00120@\$19.00=2,280.00@\$19.0080@\$24.00=1,920.00420@\$24.00=10,080.00\$4,200.00\$10,080.00October 26700@ \$29.00@\$14.00@\$19.00420@\$24.00=10,080.00700@\$29.0020,300.00Totals\$11,370.00\$30,380.00Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
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March 15@\$14.00 =\$0.0010@\$14.00 =\$140.00240@\$19.00 =4,560.00110@\$19.00 =\$2,090.00\$4,560.00\$2,230.00July 30500@\$24.0010@\$14.00 =\$140.00110@\$19.00 =2,090.00500@\$24.00 =12,000.00\$14,230.00October 5@\$14.00 =\$0.0010@\$14.00 =\$140.00@\$19.00 =0.00110@\$19.00 =2,090.00200@\$24.00 =4,800.00300@\$24.00 =7,200.00\$4,800.00\$9,430.00October 26700@\$29.0010@\$14.00 =\$140.00110@\$19.00 =2,090.00300@\$24.00 =7,200.00700@\$29.0020,300.00Totals\$12,020.00\$29,730.00Compute the gross margin for FIFO method.FIFO:Sales revenue\$27,720Less: Cost of goods sold11,370Gross margin\$16,350Compute the gross margin for LIFO method.LIFO:Sales revenue\$27,720Less : Cost of goods sold12,020Gross margin\$15,700Explanation: FIFO Gross marginSales revenue (630 units sold × \$44.00 selling price) = \$27,720LIFO Gross marginSales revenue (630 units sold × \$44.00 selling price) = \$27,7205
Hemming Co. reported the following current-year purchases and sales data for its only product.DateActivitiesUnits Acquired at CostUnits Sold at RetailJan.1Beginninginventory145units@ \$11.80=\$1,711Jan.10Sales135units@ \$41.80Mar.14Purchase295units@ \$16.80=4,956Mar.15Sales185units@ \$41.80July30Purchase445units@ \$21.80=9,701Oct.5Sales255units@ \$41.80Oct.26Purchase645units@ \$26.80=17,286Totals1,530units\$33,654575unitsRequired: Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 120 units from the March 14 purchase, 190 units from the July 30 purchase, and all 645 units from the October 26 purchase. Using the specific identification method, calculate the following.