Required information [The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 Activities Beginning inventory Sales March 14 Purchase March 15 Sales July 30 October 5 Purchase Sales October 26 Purchase Totals 200 units Units Acquired at Cost @ $10 Units Sold at Retail = $ 2,000 150 units @ $40 350 units @ $15 5,250 300 units @ $40 450 units @ $20 9,000 430 units @ $40 100 units 1,100 units @ $25 2,500 $ 18,750 880 units 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 profit for each method. a) Periodic FIFO Beginning inventory Purchases: Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Number of units Cost of Goods Number Cost per unit Available for Sale of units Cost per unit sold Cost of Goods Sold Number of units in ending Cost per unit Ending Inventory inventory 200 $ 10.00 $ 2,000 200 $10.00 $ 2,000 0 March 14 350 $ 15.00 5,250 350 $ 15.00 5,250 0 July 30 450 $ 20.00 9,000 330 $ 20.00 6,600 120 $20.00 $ 2,400 October 26 100 $ 25.00 2,500 0 100 $ 25.00 2,500 Total 1,100 $ 18,750 880 $ 13,850 220 $ 4,900 b) Periodic LIFO Beginning inventory Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Number of units Cost per unit Available for Sale Cost of Goods Number Cost per of units sold unit Cost of Goods Sold Number of units in ending Cost per unit Ending Inventory inventory 200 $10.00 $ 2,000 Purchases: March 14 350 $ 15.00 5,250 July 30 450 $ 20.00 9,000 450 $ 20.00 9,000 October 26 100 $ 25.00 2,500 100 $ 25.00 2,500 Total 1,100 $ 18,750 550 $ 11,500 $ 0 c) Gross Profit FIFO LIFO Sales $ 35,200 $ 35,200 Cost of goods sold 13,850 16,450 Gross profit $ 21,350 $ 18,750