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 300 units @ $14.00 = $ 4,200 Jan. 10 Sales 250 units @ $44.00 Mar. 14 Purchase 520 units @ $19.00 = 9,880 Mar. 15 Sales 460 units @ $44.00 July 30 Purchase 500 units @ $24.00 = 12,000 Oct. 5 Sales 480 units @ $44.00 Oct. 26 Purchase 200 units @ $29.00 = 5,800 Totals 1,520 units $ 31,880 1,190 units Required: Hemming uses a perpetual inventory system.

Compute the gross margin for FIFO method and LIFO method.

Compute the gross margin for FIFO method and LIFO method.

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