Required information Use the following information for the Exercises 8-10 below. (Algo) (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 210 units @ $10.40 = $ 2,184 170 units @ $40.40 310 units @ $15.40 = 4,774 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase 270 units @ $40.40 410 units @ $20.40 8,364 380 units @ $40.40 110 units @ $25.40 1,040 units 2,794 $18, 116 Totals 820 units Exercise 5-8 (Algo) Periodic: Inventory costing methods-FIFO and LIFO LO P1 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 profit for each method. a) Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending 210 Beginning inventory Purchases: March 14 July 30 October 26 Total 0 $ 0 0 0 210 b) Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Beginning inventory Purchases: March 14 July 30 October 26 Total 0 0 0 0 0 $ an 6:4 CICA | ICA c) Gross profit FIFO LIFO 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 Cost per Cost per Cost per Date # of units # of units sold Cost of Goods Sold Inventory Balance Inventory # of units unit Balance 210 @ $ 10.40 = $ 2,184.00 unit unit January 1 January 10 170 @ $ 10.40 $ 1,768.00 40 $ 10.40 = $ 416.00 March 14 310 a $ 15.40 40 @ $ 10.40 = II = $ 416.00 310] @ $ 15.40 = 4,774.00 $ 5,190.00 March 15 40 a $ 10.40 = $ 416.00 $ 10.40 230 @ $ 15.40 = II a $ 15.40 = 3,542.00 3,958.00 $ July 30 March 15 40 $ 10.40 = Il $ 416.00 $ 10.40 230 $ 15.40 = @ $ 15.40 = 3,542.00 3,958.00 $ July 30 October 5 October 26 Totals $ 5,726.00 Required information January 1 210 @ $ 10.40 = $ 2,184.00 January 10 March 14 March 15 July 30 October 5 October 26 Totals $ 0.00 Required 1 Required 2 Required 3 Compute the gross profit for FIFO method and LIFO method. FIFO: LIFO: Sales revenue Less: Cost of goods sold Gross profit