Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1

Required information Use the following information for the Exercises below [The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. Date Jan 1 Beginning inventory Jan.10 Sales Mar. 14 Purchase Mar.15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase Activities Units Acquired at Cost 275 units$13.00-$ 3,575 50 units$18.008,100 475 units $23.00-10,925 175 units $28.004,900 Units Sold at Retail 230 units $43.e0 400 units$43.00 455 units $43.00 Totals 1,375 units $27,500 1,085 units Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 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 Required 1 Required 2 Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using LIFO Perpetual LIFO: urchase Inventory Balance Cost per unit # of units sold | Cost per | Cost of Goods Cost per Inventory Balance 0 Date # of units units unit Sold unit January 1 January 10 March 14 27513.00 S 3,575.00 March 15 July 30 October 5 October 26 Totals S 0.00