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 Use the following information for the Exercises below [The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Jan. 1 Beginning inventor,y Jan. 10 Saless Mar. 14 Purchase Mar.15 Sales July30 Purchase Oct. 5 Saless Oct. 26 Purchase 215 units @ $10.60 = $ 2,279 320 units $15.604,992 415 units @ $20.60 8,549 115 units @ $25.60 = 2,944 Units Sold at Retail 180 units$40.60 260 units$40.60 400 units$40.60 Totals 1,065 units $18,764 840 units ercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 Required1Required 2Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using FIFO Perpetual FIFO: Goods Purchase Cost of Goods Sold Inventory Balance #of units Cost per unit # of units sold Cost per unit Cost of Goods Sold Cost per unit Inventory Balance Date # of units anuary 1 January 10 March 14 21510.602,279.00 35|@| $ 10.60|-| $ 371.00 3510.60371.00 4,992.00 $ 5,363.00 180|@$ 10.60 | $ 1,908.0of 320$15.60 320$15.60 - March 15 SX @$10.60 35$10.60371.00 0.00 15.60 July 30 October5 October 26 Totals $2,279.00 Perpetual LIF Goods Purchase Cost of Goods Sold Inventory Balance #of units Cost per unit # of units Cost per Cost of Goods Cost per Inventory Balance Date # of units unit Sold unit January 1 January 10 March 14 215 @| $10.60=| $ 2,279.00 March 15 July 30 October 5 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