! Required information Use the following information for the Exercises below. (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 265 units @ $12.60 $ 3,339 = 225 units @ $42.60 430 units @ $17.60 = 7,568 Date Activities Jan. 1 Beginning inventory Jan.10 Sales Mar.14 Purchase Mar.15 Sales July 30 Purchase Oct. 5 Sales Oct.26 Purchase 370 units @ $42.60 465 units @ $22.60 = 10,509 440 units @ $42.60 165 units @ $27.60 1,325 units 4,554 $25,970 Totals 1,035 units Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 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. Required 1 Required 2 Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: Goods Purchased Cost of Goods Sold # of Cost per # of units Cost per Cost of Goods units unit sold unit Sold Date Inventory Balance Cost per Inventory # of units unit Balance 265 @ $ 12.60 = $ 3,339.00 January 1 January 10 225 @ $ 42.60 = $ 9,585.00 $ 12.60 = March 14 430 @ $17.60 @ $ 12.60 @ $17.60 March 15 July 30 465| @ $ 22.60 $ 22.60 October 5 October 26 165 @ $27.60 $27.60 Totals $ 9,585.00 Required 1 Required 2 Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. Perpetual LIFO: Goods Purchased # of Cost per units unit Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Inventory Balance Cost per Inventory # of units unit Balance Date January 1 265 @ $ 12.60 = $ 3,339.00 January 10 March 14 March 15 July 30 October 5 October 26 Totals $ 0.00 Required 1 Required 2 Required 3 Compute the gross margin for FIFO method and LIFO method. FIFO: LIFO: Sales revenue Less: Cost of goods sold Gross margin