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 295 units @ $13.80 = $ 4,071 240 units @ $43.80 480 units @ $18.80 = 9,024 Date Activities Jan. 1 Beginning inventory Jan.10 Sales Mar.14 Purchase Mar.15 Sales July 30 Purchase Oct. 5 Sales Oct.26 Purchase 420 units @ $43.80 495 units @ $23.80 = 11,781 465 units @ $43.80 195 units @ $28.80 = 1,465 units 5,616 $30,492 Totals 1,125 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. Perpetual LIFO: Goods Purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit # of units sold Cost per Cost of Goods unit Sold # of units January 1 January 10 240 @ $ 13.80 = $3,312.00 295 @ 55 @ 55 @ 480 @ Cost per unit $ 13.80 = $ 13.80 = $ 13.80 = $ 18.80 = Inventory Balance $ 4,071.00 $ 759.00 $ 759.00 9,024.00 $ 9,783.00 March 14 480 @ $ 18.80 March 15 $ 0 420 @ @ $ 13.80 $ 18.80 = = $ 0.00 7,896.00 $7,896.00 55 60 @ @ $ 13.80 = $ 18.80 = $ $ 759.00 1,128.00 1,887.00 759.00 1,128.00 11,781.00 July 30 495 @ $23.80| 55 @ 60 @ 495 @ $ 13.800 = $ 18.80 = $23.80 = $ 13,668.00 October 5 $ 0 0 465 @ @ @ $ 13.80 $ 18.80 $ 23.80 = = = $ 0.00 0.00 11,067.00 $1,067.00 55 60 30 @ @ @ $ 13.80 = $ 18.80| = | $ 23.80 = 759.00 1,128.00 714.00 2,601.00 $ October 26 195 @ $28.80 $ 55 60 30 195 @ @ @ @ $13.80 = $ 18.80 = $23.80 = $28.80 759.00 1,128.00 714.00 5,616.00 Totals $ 8,217.00 22,275.00