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

230

units

@ $11.20

=

$

2,576

Jan.

10

Sales

160

units

@ $41.20

Mar.

14

Purchase

350

units

@ $16.20

=

5,670

Mar.

15

Sales

320

units

@ $41.20

July

30

Purchase

430

units

@ $21.20

=

9,116

Oct.

5

Sales

400

units

@ $41.20

Oct.

26

Purchase

130

units

@ $26.20

=

3,406

Totals

1,140

units

$

20,768

880

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.