Hemming Co. has 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||Beginning inventory||120 units at $10.80 = $ 1,296|
|Jan. 10||Sales||110 units at $40.80|
|Mar. 14||Purchase||270 units at $15.80 = 4,266|
|Mar. 15||Sales||160 units at $40.80|
|July 30||Purchase||420 units at $20.80 = 8,736|
|Oct. 5||Sales||280 units at $40.80|
|Oct. 26||Purchase||620 units at $25.80 = 15,996|
|Totals||1,430 units at $ 30,294||550 units|
Hemming uses a periodic inventory system. Compute the gross margin using LIFO.
An inventory refers to the current asset of an organization that is controlled and managed by the business in order to create a path for efficient operations. In other words, it is the source which is used for sale throughout a particular period.
Answer and Explanation: 1
Computation of gross margin:
|Number of units sold||550|
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fromChapter 1 / Lesson 7
Learn the definition of beginning inventory and understand how to calculate it. Find the beginning inventory formula and discover various examples of its usage.