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

205

units

@ $10.20

=

$

2,091

Jan.

10

Sales

160

units

@ $40.20

Mar.

14

Purchase

300

units

@ $15.20

=

4,560

Mar.

15

Sales

250

units

@ $40.20

July

30

Purchase

400

units

@ $20.20

=

8,080

Oct.

5

Sales

375

units

@ $40.20

Oct.

26

Purchase

105

units

@ $25.20

=

2,646

Totals

1,010

units

$

17,377

785

units

Compute the gross margin for FIFO method and LIFO method.

	FIFO:	LIFO:
Sales revenue
Less: Cost of goods sold
Gross margin