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0 of 3 Required information [The following information applies to the questions displayed below.) Hemming Co. reported the following current-year purchases and sales for its

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0 of 3 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 required at Cost Units Sold at Retail Jan. 1 Beginning inventory 265 units $12.60 - $ 3,339 Jan. 10 Sales 225 units $42.60 Mar. 14 Purchase 430 units $17.60 - 7,568 Mar.15 Sales 370 units $42.60 July 30 Purchase 465 units $22.60 - 10,509 Oct. 5 Sales 440 units $42.60 Oct. 26 Purchase 165 units $27.60 - 4,554 Totals 1,325 units $25,970 1,035 units nt Required: Hemming uses a periodic inventory system. (a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO (b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. (c) Compute the gross margin for each method. a) Periodic FIFO Cost of Goods Available for Sale Cost per Cost of Goods # of units unit Available for Sale Cost of Goods Sold Ending Inventory of units Cost per Cost of of units Cost Ending sold unit Goods Sold in ending inventory per unit Inventory Required information a) Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Cost of Goods # of units Cost per # of units Cost per Cost of Available for unit Sale sold unit Goods Sold 265 $ 12.60 $ 3,339 265 $ 12.60 Ending Inventory # of units Cost Ending In ending inventory per unit Inventory 0 3,339 4301 $ 17.60 Beginning inventory Purchases: March 14 July 30 October 26 Total 7,568 0 2,825 430 $ 17.60 465 $ 22.60 165 $ 27.60 1,325 7,568 10,509 4,554 25,970 0 695 125 $22.60 165 $27.60 290 4,554 7,379 $ $ 10,907 $ b) Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Cost of Goods # of units # of units Cost per Available for Cost of unit sold unit Sale Goods Sold 265 $ 12.60 $ 3,339 Cost per Ending Inventory # of units Cost Ending in ending Inventory per unit Inventory Beginning inventory Purchases March 14 July 30 October 26 Total 7,568 10,509 0 430$ 17.60 465 $ 22.60 165 $ 27.60 1,325 0 4,554 25,970 $ 0 $ 0 $ 0 c) Gross Margin Sales FIFO LIFO $ 44,091 $ 44,0911 c) Gross Margin FIFO LIFO Sales Cost of goods sold Gross margin $ 44,091 $ 44,091 (18,591) $ 25,500

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