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 profit for FIFO method and LIFO method.

Required information Use the following information for the Exercises 8-10 below. (Static) [The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 Activities Beginning inventory Sales Purchase Sales. Purchase Sales Purchase Totals March 14 March 15 July 30 October 5 October 26 Units Acquired at Cost @ $10 = @ $15 @ $20 Required: Hemming uses a perpetual inventory system. 200 units 350 units 450 units 100 units 1,100 units @ $25 = = = $ 2,000 5,250 9,000 2,500 $ 18,750 Units Sold at Retail 150 units @ $40 @ $40 @ $40 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 profit for FIFO method and LIFO method. 300 units 430 units Exercise 5-8 (Static) Perpetual: Inventory costing methods-FIFO and LIFO LO P1 880 units Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: Cost of Goods Sold Cost per unit January 1 January 10 Date March 14 Total March 14 March 15 Total March 15 July 30 Total July 30 October 5 Total October 5 October 26 Totals Goods Purchased # of units Cost per unit # of units sold Cost of Goods Sold $ 0.00 Inventory Balance Cost per unit # of units Inventory Balance Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. Perpetual LIFO: Cost of Goods Sold Cost per unit January 1 January 10 Date March 14 Total March 14 March 15 Total March 15 July 30 Total July 30 October 5 Total October 5 October 26 Totals Goods Purchased # of units Cost per unit # of units sold Cost of Goods Sold $ 0.00 # of units Inventory Balance Cost per unit Inventory Balance Compute the gross profit for FIFO method and LIFO method. Sales revenue Less: Cost of goods sold Gross profit FIFO LIFO