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

215

units

@ $10.60

=

$

2,279

Jan.

10

Sales

180

units

@ $40.60

Mar.

14

Purchase

320

units

@ $15.60

=

4,992

Mar.

15

Sales

260

units

@ $40.60

July

30

Purchase

415

units

@ $20.60

=

8,549

Oct.

5

Sales

400

units

@ $40.60

Oct.

26

Purchase

115

units

@ $25.60

=

2,944

Totals

1,065

units

$

18,764

840

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.