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 200 units @ $10 = $ 2,000

Jan. 10 Sales 150 units @ $40

Mar. 14 Purchase 350 units @ $15 = 5,250

Mar. 15 Sales 300 units @ $40

July 30 Purchase 450 units @ $20 = 9,000

Oct. 5 Sales 430 units @ $40

Oct. 26 Purchase 100 units @ $25 = 2,500

Totals 1,100 units $ 18,750 880 units

Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1

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 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 # of cost per of units cost per cost of Goods Sold ! #ot units unit Cost per Inventory Balance Date sold 200$10.00 $2.000.00 January 10 March 14 March 15 July 30 October 5 October 26 Totals Hemming Co. reported the following current-year purchases and sales for its only product Units Sold at Activities Units Acquired at Cost Jan. 1 Beginning inventory an.10 Sales Mar.14 Purchase Mar.15 Sales uly30 Purchase Oct. 5 Sales Oet.26 Purchase 200 units $10 2,000 350 units $15-5,250 450 unitse $20 9, 000 100 unitse $25-2 500 150 units $40 300 unitse $40 430 unit $40 Totals 1,100 units $18,750 880 units Exercise 5-8 Specific identification LO P1 Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 45 units from the March 14 purchase, 75 units from the July 30 purchase, and all 100 units from the October 26 purchase. Using the specific identification method, calculate the st of Goods Sold using Specific Available for Sale Cost of Goods Sold Ending Inventory Ending Unit Cost COGS Inventory Unit Cost Inventory Ending Units Unit Units Cost Sold Activity Jan. 1 Beginning Inventory Mar. 14 Purchase July 30 Purchase Oct. 26 Purchase 200 350 450 100 1,100 Gross Margin using Specific ldentification Less: Units Sold at Activities Units Aequired at Cost an. 1 Beginning inventory Mar.14 Purchase Mar.15 Sales July30 Purchase Oet. 5 Sales 200 unitse $10-2,000 350 unitst $15 5,250 450 units $20 9,000 100 unitse $252,500 150 units $40 300 unitse $40 430 uniese $40 Totals 1, 100 anita $18.750 880 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. ) Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Cost per Available fr sold Cost of Goodsof units # of units : Cost | Ending units Cost per Cost of #Of units unit unit Goods Sold per unit Inventory Sale Beginning inventory Purchases March 14 July 30 October 26 Total Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Cost of Goods of units Cost per Cost per Available for sold Sale | #Of units unit Goods Sold in ending cstEnding s of units unit per unit Inventory Beginning inventory Purchases: March 14