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. Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: 1 Goods Purchased # of Cost per units unit Date Cost of Goods Sold # of units Cost of Goods sold unit Sold Cost per Inventory Balance # of units Cost per Inventory unit Balance 235 @ $ 11,40 - $ 2,679.00 ences January 1 January 10 March 14 March 15 Prey 1 of 1 !!! Next Kiona Co. set up a petty cash tund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's fiscal year). May 1 Prepared a company check for $400 to establish the petty cash fund. 15 Prepared a company check to replenish the fund for the following expenditures made wince May 1. a. Paid $124.80 for anitorial expenses. b. Paid $101.88 for miscellaneous expenses. c. Paid postage expenses of $69.60 d. Paid $91.44 to Facebook for advertising expense. e. Counted $30.68 remaining in the petty cashbox. 16 Prepared a company check for $200 to increase the fund to $600. 31 The petty cashier reports that $411.19 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15. f. Paid postage expenses of $64.48. g. Reimbursed the office manager for mileage expense, $51.33. h. Paid $53.00 in delivery expense for products to a customer, terma POB destination 31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total at $550. Required: Prepare journal entries to establish the fund on May 1, to replenish it on May 15 and on May 31, and to reflect any increase or decrease in the fund balance on May 16 and May 31 (Round your answers to 2 decimal places.) View transaction list Journal entry worksheet 1 2 3 4 5 Prepared a company check for $400 to establish the petty cash fund: Note: Enter debits before credits