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! 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

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! 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 500 at Retall Units Acquired at Cost 270 units @ $12.80 $3,456 220 units @ $42.80 400 units @ $17.80 7,120 340 units @ $42.80 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase Totals 470 units @ $22.80 10,716 440 units 542.80 170 units @ $27.80 1,310 units 4,726 $26,818 1,000 units 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 a) Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Cost of Goods of units Available for # of units Cost per Cost of unit Sale sold unit Goods Sold 270 5 12 80 $ 3,456 270 $ 1280 3.456 Cost per Ending Inventory #of units Cost in ending Ending Inventory Inventory 0 per unit Beginning inventory Purchase Required information Perico TO Cast Cost per TGV Cost of Goods #ol units Available for # of units Cost per unit Sale sold unit 270 $ 12 80 $ 3,456 270 $ 12 80 Cost of Goods Sold of units in ending inventory 0 Ending Inventory per unit 3,456 Beginning inventory Purchases March 14 0 400 $ 17.80 380 $ 22.80 7,120 8,664 $22.80 2,736 July 30 400 $ 17.80 470 $ 22.80 170 $ 27.80 1,310 7,120 10,716 4,726 26,018 0 120 0 120 October 26 Total $ $ $ 19,240 2,736 1,050 b) Periodic LIFO Cost of Goods Avatlable for Sale Cost of Goods Sold Cost of Goods # of units Available for Cost of # of units Cost per unit sold unit Goods Sold Sale 270 $ 12.80 $ 3,456 0 Ending Inventory # of units Cost Ending in ending Inventory inventory Cost per per unit Beginning inventory Purchases March 14 July 30 October 26 Total 400 $ 17.80 470 $ 22.80 170 $ 27.80 1,310 7,120 10,716 4,726 $ $ 26.018 0 c) Gross Margin Cost of goods sold Gross margin Sales FIFO LIFO $ 18,100 $ 18,900 24,700 23,900 $ 7,9187 7.118

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