Hemming Co. reported the following current-year purchases and sales for its only product. Required: Hemming uses a perpetual inventory system. 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 3. Compute the gross margin for FIFO method and LIFO method.

Required information [The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost 240 units @ $11.60 $ 2, 784 = 180 units @ $41. 60 370 units @ $16.60 6, 142 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase Totals 330 units @ $41. 60 440 units @ $21. 60 - 9, 504 415 units @ $41.60 140 units @ $26. 60 3, 724 $22, 154 1, 190 units 925 units Required: Hemming uses a perpetual inventory system. 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned ending inventory and to cost of goods sold using LIFO. 3. Compute the gross margin for FIFO method and LIFO method. Required 1 Required 2 Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: Goods Purchased Cost of Goods Sold Inventory Balance Cost per Date Cost per # of units # of units sold Cost per Cost of Goods Sold unit # of units unit unit Inventory Balance $ 2,784.00 January 1 240 @ $ 11.60 = January 10 180 @ $ 11.60 = $ 2,088.00 60 @ $ 11.60 = $ 696.00 March 14 370 @ $ 16.60 60 @ $ 11.60] = $ 696.00 370 @ $ 16.60 = 6,142.00 $ 6,838.00 March 15 60 @ 180 @ $ 11.60 $ 2,088.00 $ 11.60 $ 16.60 $ 696.00 0.00 @ = @ $ 696.00 $ 2,088.00 July 30 October 5 October 26 Totals $ 2,784.00 Required 1 Required 2 Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. Perpetual LIFO: Goods Purchased Cost of Goods Sold Inventory Balance Cost per Date # of units # of units sold Cost per Cost of Goods unit Sold # of units Cost per unit unit Inventory Balance $ 2,784.00 January 1 240 @ $ 11.60] = January 10 March 14 March 15 July 30 October 5 October 26 Totals $ 0.00 Required 1 Required 2 Required 3 Compute the gross margin for FIFO method and LIFO method. FIFO: LIFO: Sales revenue Less: Cost of goods sold Gross margin