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

295

units

@ $13.80

=

$

4,071

Jan.

10

Sales

240

units

@ $43.80

Mar.

14

Purchase

480

units

@ $18.80

=

9,024

Mar.

15

Sales

420

units

@ $43.80

July

30

Purchase

495

units

@ $23.80

=

11,781

Oct.

5

Sales

465

units

@ $43.80

Oct.

26

Purchase

195

units

@ $28.80

=

5,616

Totals

1,465

units

$

30,492

1,125

units

Exercise 5-9A Periodic: Inventory costing system LO P3

Required: Hemming uses a periodic inventory system. (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.

Cost of Goods Cost ofin ending # of units # of units Cost per Available for | # of units | Cost Ending sold unitGoods Sold Sale inventory per unit Invento Beginning inventory Purchases March 14 July 30 October 26 Total b) Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost inventory per unit Inventory Cost of Goods | # of units # of units unit Goods Sold in ending Cost per Available for Cost per Ending Cost of # of units per unit sold Sale Beginning inventory Purchases March 14 July 30 October 26 Total c) Gross Margin FIFO LIFO