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.

Date Activities Units Acquired at Cost Dan. 1 Beginning inventory Jan. 10 Sales Mar.14 Purchase Mar.15 Sales July30 Purchase Oct. 5 Sales Oct. 26 Purchase 230 units $11.20-$ 2,576 350 units $16.20-5,670 430 units $21.209,116 130 units $26.203,406 Units Sold at Retail 160 units$41.20 320 units $41.20 400 units$41.20 Totals 1,140 units $20,768 880 units Perpetual FIFO: s Purchase st of Goods Sold Inventory Balance Cost per unit # of units sold | Cost per | Cost of Goods Cost per unit Inventory Balance 0 Date # of units units unit Sold January 1 January 10 March 14 23011.20 2,576.00 350$16.20 16.20 March 15 July 30 October 5 October 26 Totals $ 0.00 Perpetual LIFO: chased Inventory Balance Cost per # of units sold | Cost per | Cost of Goods Cost perIventory Balance 0 Date # of units units unit unit Sold unit January 1 January 10 March 14 23011.20 2,576.00 March 15 July 30 October5 October 26 Totals $ 0.00 Required Required 2 Required 3 Compute the gross margin for FIFO method and LIFO method.. FIFO LIFO: Sales revenue Less: Cost of goods s Gross margin