! Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Date Activities January 1 January 10 March 14 March 15 Sales July 30 Purchase October 5 Sales October 26 Purchase Totals Beginning inventory Units Acquired at Cost 240 units @ $11.60 = Units Sold at Retail $ 2,784 Sales Purchase 180 units @ $41.60 370 units @ $16.60 = 6,142 330 units @ $41.60 440 units @ $21.60 = 9,504 415 units @ $41.60 140 units 1,190 units @ $26.60 = 3,724 $ 22,154 925 units Exercise 5-8 (Algo) Periodic: Inventory costing LO P3 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 per unit Cost of Goods Available for Sale Number of units sold Cost per unit Cost of Goods Sold Number of units in ending inventory Cost per unit Ending Inventory 240 $ 11.60 $ 2,784 240 $ 11.60 $ 2,784 0 March 14 370 $ 16.60 6,142 July 30 440 $ 21.60 9,504 October 26 140 $ 26.60 3,724 0 Total 1,190 $ 22,154 240 b) Periodic LIFO Beginning inventory Purchases: 2,784 140 140 $ 26.60 $ 3,724 3,724 Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Number of Cost per unit units Cost of Goods Available for Sale Number of units sold Cost per unit Cost of Goods Sold Number of units in ending inventory Cost per unit Ending Inventory 240 $ 11.60 $ 2,784 0 240 $ 11.60 $ 2,784 March 14 370 $ 16.60 6,142 July 30 440 $ 21.60 9,504 October 26 140 $ 26.60 3,724 140 $ 26.60 Total 1,190 $ 22,154 140 c) Gross profit Sales Cost of goods sold Gross profit FIFO LIFO SA 3,724 0 3,724 240 2,784