#8 Required information

Use the following information for the Exercises 8-10 below. (Algo)

[The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Required:

Required information

Use the following information for the Exercises 8-10 below. (Algo)

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[The following information applies to the questions displayed below.]

Hemming Company reported the following current-year purchases and sales for its only product.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
January 1	Beginning inventory	260	units	@ $12.40	=	$ 3,224
January 10	Sales						215	units	@ $42.40
March 14	Purchase	420	units	@ $17.40	=	7,308
March 15	Sales						380	units	@ $42.40
July 30	Purchase	460	units	@ $22.40	=	10,304
October 5	Sales						425	units	@ $42.40
October 26	Purchase	160	units	@ $27.40	=	4,384
	Totals	1,300	units			$ 25,220	1,020	units

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 profit for FIFO method and LIFO method.

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