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

125

units

@ $11.00

=

$

1,375

Jan.

10

Sales

115

units

@ $41.00

Mar.

14

Purchase

275

units

@ $16.00

=

4,400

Mar.

15

Sales

165

units

@ $41.00

July

30

Purchase

425

units

@ $21.00

=

8,925

Oct.

5

Sales

275

units

@ $41.00

Oct.

26

Purchase

625

units

@ $26.00

=

16,250

Totals

1,450

units

$

30,950

555

units

Required:

Hemming uses a perpetual inventory system. (Round cost per unit to 2 decimal places.)

(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) 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

January 10

March 14

March 15

July 30

October 5

October 26

=

Totals

*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.

a) Perpetual LIFO:

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

January 10

March 14

March 15

July 30

October 5

October 26

=

Totals

*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.