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.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Jan.

1

Beginning inventory

225

units

@ $11.00

=

$

2,475

Jan.

10

Sales

150

units

@ $41.00

Mar.

14

Purchase

340

units

@ $16.00

=

5,440

Mar.

15

Sales

300

units

@ $41.00

July

30

Purchase

425

units

@ $21.00

=

8,925

Oct.

5

Sales

395

units

@ $41.00

Oct.

26

Purchase

125

units

@ $26.00

=

3,250

Totals

1,115

units

$

20,090

845

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.