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

295

units

@ $13.80

=

$

4,071

Jan.

10

Sales

240

units

@ $43.80

Mar.

14

Purchase

480

units

@ $18.80

=

9,024

Mar.

15

Sales

420

units

@ $43.80

July

30

Purchase

495

units

@ $23.80

=

11,781

Oct.

5

Sales

465

units

@ $43.80

Oct.

26

Purchase

195

units

@ $28.80

=

5,616

Totals

1,465

units

$

30,492

1,125

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.

Periodic FIFO Cost of Goods Sold Cost of Goods Available for Sale Cost of Goods Cost per of units Available for unit Sale of units Cost per sold unit Cost of Goods Sold Ending Inventory #of units Cost in ending Ending per unit Inventory inventory Beginning inventory Purchases March 14 July 30 October 28 Total 5 0 0 s 0 0 $ 0 b) Periodic LIFO Cost of Goods Sold Cost of Goods Available for Sale Cost per Cost of Goods # of units Available for unit Sale of units Cost per sold unit Cost of Goods Sold Ending Inventory Fof units Cost Ending in ending per unit inventory Inventory Beginning inventory Purchase March 14 July 30 Odober 28 Total $ 0 $ Gross Margin FIFO LIFO (Prey 12 of 14 !!! Next > SE FS Bull A 2 % 5 3 4 & 7 0) 8 9 w E R T Y C 1 0 S D F G H J K C V B N M