! Required information (The following information applies to the questions displayed below.) Hemming Co. reported the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost 200 units @ $10 = $ 2,000 150 units @ $40 350 units @ $15 5,250 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase 300 units @ $40 450 units @ $20 9,000 430 units $40 100 units @ $25 2,500 Totals 1,100 units $18,750 880 units 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 Cost per # of units Cost per Cost of Goods unit unit Inventory Balance Cost per Inventory # of units unit Balance # of units Date sold Sold 200 @ $ 10.00 = $ 2,000.00 January 1 January 10 150 @ $ 10.00 $ 1,500.00 50 @ $ 10.00 = $ 500.00 March 14 350 @ $ 15.00 50 @ $ 10.00 = $ 500.00 350 @ $ 15.00 = 5,250.00 $ 5,750.00 March 15 11 $ 500.00 50 @ $ 10.00 250 @ $ 15.00 = 3,750.00 100 @ $ 10.00 - $ 1,000.00 @ $ 15.00 = $ 1,000.00 $ 4,250.00 July 30 October 5 October 26 Totals $ 5,750.00 Required 1 Required 2 > Required 1 Required 2 Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. Perpetual LIFO: Goods Purchased Cost of Goods Sold # of Cost per # of units Cost per Cost of Goods units unit sold unit Sold Date Inventory Balance Cost per Inventory # of units unit Balance 200 @ $ 10.00 = $ 2,000.00 January 1 January 10 March 14 March 15 July 30 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