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

110

units

@ $10.40

=

$

1,144

Jan.

10

Sales

100

units

@ $40.40

Mar.

14

Purchase

260

units

@ $15.40

=

4,004

Mar.

15

Sales

150

units

@ $40.40

July

30

Purchase

410

units

@ $20.40

=

8,364

Oct.

5

Sales

290

units

@ $40.40

Oct.

26

Purchase

610

units

@ $25.40

=

15,494

Totals

1,390

units

$

29,006

540

units

Required:

Hemming uses a perpetual inventory system.

3.

value: 8.33 points

Required information

Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.

Hints

References

eBook & Resources

Hint #1

Check my work

4.

value: 8.33 points

Required information

Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.

Hints

References

eBook & Resources

Hint #1

Check my work

5.

value: 8.33 points

Required information

Compute the gross margin for FIFO method.

Compute the gross margin for LIFO method.