Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.

Perpetual FIFO:
	Goods Purchased					Cost of Goods Sold									Inventory Balance
Date	# of units		Cost per unit	# of units sold			Cost per unit	Cost of Goods Sold			# of units			Cost per unit	Inventory Balance
January 1									290	@	$13.60	=	$3,944.00
January 10				260	@	$13.60	=	$3,536.00	30	@	$13.60	=	$408.00
March 14	500	@	$18.60						30	@	$13.60	=	$408.00
									500	@	$18.60	=	9,300.00
													$9,708.00
March 15				60	@	$13.60	=	$816.00	0	@	$13.60	=
				200	@	$18.60	=	3,720.00	300	@	$18.60	=	$5,580.00
								$4,536.00					$5,580.00
July 30	490	@	$23.60						0	@	$13.60
									300	@	$18.60	=	5,580.00
									490	@	$23.60	=	11,564.00
													$17,144.00
October 5				0	@	$13.60	=	$0.00	0	@	$13.60
				190	@	$18.60	=	3,534.00	0	@	$18.60
				300	@	$23.60	=	7,080.00	190	@	$23.60	=	4,484.00
								$10,614.00					$4,484.00
October 26	190	@	$28.60						0	@	$13.60
									0	@	$18.60
									190	@	$23.60	=	4,484.00
									190	@	$28.60	=	5,434.00
Totals								$18,686.00					$9,918.00

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FPO

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

290

units

@ $13.60

=

$

3,944

Jan.

10

Sales

260

units

@ $43.60

Mar.

14

Purchase

500

units

@ $18.60

=

9,300

Mar.

15

Sales

430

units

@ $43.60

July

30

Purchase

490

units

@ $23.60

=

11,564

Oct.

5

Sales

470

units

@ $43.60

Oct.

26

Purchase

190

units

@ $28.60

=

5,434

Totals

1,470

units

$

30,242

1,160

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.