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ACC 291T Wk 2 – Practice: Connect Knowledge Check (2021 New)
Required information
[The following information applies to the questions displayed below.]
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 | 240 | units | @ $11.60 | = | $ | 2,784 | ||||||||
Jan. | 10 | Sales | 180 | units | @ $41.60 | |||||||||||
Mar. | 14 | Purchase | 370 | units | @ $16.60 | = | 6,142 | |||||||||
Mar. | 15 | Sales | 330 | units | @ $41.60 | |||||||||||
July | 30 | Purchase | 440 | units | @ $21.60 | = | 9,504 | |||||||||
Oct. | 5 | Sales | 415 | units | @ $41.60 | |||||||||||
Oct. | 26 | Purchase | 140 | units | @ $26.60 | = | 3,724 | |||||||||
Totals | 1,190 | units | $ | 22,154 | 925 | 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.
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Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 30 units for $50 each.
Purchases on December 7 | 20 units @ $20.00 cost |
Purchases on December 14 | 34 units @ $30.00 cost |
Purchases on December 21 | 30 units @ $36.00 cost |
Required:
Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method.
Required:
Monson sells 30 units for $50 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on LIFO.
Required:
Monson sells 30 units for $50 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.)
Required:
Monson sells 30 units for $50 each on December 15. Of the units sold, 16 are from the December 7 purchase and 14 are from the December 14 purchase. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on specific identification.