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 290 units @ $13.60 = $ 3,944 260 units @ $43.60 500 units @ $18.60 9,300 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 430 units @ $43.60 490 units @ $23.60 = 11,564 470 units @ $43.60 190 units @ $28.60 1,470 units 5,434 $30, 242 1,160 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. Answer is complete but not entirely correct. a) Periodic FIFO Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of # of Cost Goods units per unit Available for Sale 290 $ 13.60 $ 3,944 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory 0 Cost per unit Ending Inventory 290 $ 13.60 3,944 Beginning inventory Purchases: March 14 500 $ 18,60 9,300 500 $ 18.60 9,300 0 July 30 490 $ 23.60 11,564 370 $ 23.60 8,732 120 23.60 2,832 October 26 190 $ 28.60 5,434 0 190 28.60 5,434 $ 8,266 Total 1,470 30,242 1,160 $ 21,976 310 b) Periodic LIFO Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of # of Cost Goods units per unit Available for Sale 290 $ 13.60 3.944 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory 0 Cost per unit Ending Inventory 0 Beginning inventory Purchases: March 14 July 30 October 26 3,906 500 490 190 $ 18.60 $ 23.60 $ 28.60 9,300 11,564 5,434 210 X $ 18.60 0 X 0 % 0 0 X 0 Total 1,470 30,242 210 $ 3,906 0 0 FIFO LIFO c) Gross Margin Sales Cost of goods sold Gross margin $ 50,576 $ 50,576 (21,976) (22,626) X $ 28,600 $ 27,950 X