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

140

units

@ $11.60

=

$

1,624

Jan.

10

Sales

130

units

@ $41.60

Mar.

14

Purchase

290

units

@ $16.60

=

4,814

Mar.

15

Sales

180

units

@ $41.60

July

30

Purchase

440

units

@ $21.60

=

9,504

Oct.

5

Sales

260

units

@ $41.60

Oct.

26

Purchase

640

units

@ $26.60

=

16,250

Totals

1,510

units

$

32,966

570

units

Required:

Hemming uses a perpetual inventory system. (Round cost per unit to 2 decimal places.)

(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.

a) Perpetual FIFO:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

January 1

January 10

March 14

March 15

July 30

October 5

October 26

=

Totals

*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.

a) Perpetual LIFO:

Goods Purchased

Cost of Goods Sold

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

January 1

January 10

March 14

March 15

July 30

October 5

October 26

=

Totals

*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.