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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 245 units @ $11.80 = $ 2,891 190 units @ $41.80 390 units @ $16.80 = 6,552 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar.15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase Totals 350 units @ $41.80 445 units @ $21.80 = 9,701 430 units @ $41.80 = 3,886 145 units @ $26.80 1,225 units $23,030 970 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. Complete this questions by entering your answers in the below tabs. 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 #of Cost per units unit Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Date Inventory Balance Cost per Inventory # of units unit Balance 245 @ $ 11.80 = S 2,891.00 50) @ $ 11.80 = S 590.00 January 1 January 10 150 @ $ 10.00 = S 1,500.00 March 14 350 @ $ 15.00 S 590.00 50 @ 350) @ S 11.80 = S 15.00 = 5,250.00 S 5.840.00 March 15 50 @ = - $ 11.80 $ 15.00 590.00 3,450.00 S 4.040.00 0 @ 80 @ $ 11.80 = $ 15.00 = 230 @ $ 1,200.00 S 1.200.00 July 30 410 @ $ 20.40 0 @ $ 11.80 80 @ S 15.00 = 1,200.00 8,364.00 410 @ S 20.40 = $ 9,564.00 October 5 0 @ 80 @ S 11.80 S 15.00 S 20.40 $ 0.00 1,200.00 6,120.00 $ 7,320.00 0 @ $ 11.80 o @ $ 15.00 1101 a $ 20.40 = 300 @ 2.244.00 $ 2,244.00 October 26 1101 @ $ 25.40 0 @ 0 @ 110 @ 110 @ S 11.80 $ 15.00 $ 20.40 = S 25.40 - 2,244.00 2.794.00 Totals S 12,860.00 S 5,038.00 Required Required 2 > Complete this questions by entering your answers in the below tabs. 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 Date January 1 January 10 170 S 10.40 Inventory Balance Cost per # of units Inventory unit Balance 245 @ S 11.80 = = S 2.891.00 40 @ S 11.80 = $ 472.00 40 @ $ 11.80 = S 472.00 310 @ S 15.40 = 4.774.00 $ 5,246.00 = S 1.768.00 March 14 310 S 15.40 March 15 $ 0.00 $ 0 @ 270 @ S 11.80 = $ 15.40 40 @ S 11.80 = 40 @ $ 15.40 = 472.00 616.00 4.158.00 S 4.158.00 S $ 1,088.00 July 30 410 @ $ 20.40 S 40 @ S 11.80 = 40 @ S 15.40 = 410 @ $ 20.40 - 472.00 616.00 8,364.00 $ 9.452.00 October 5 0 @ S $ 11.80 = S 15.40 = S 20.40 @ 472.00 616.00 $ 0.00 0.00 7,752.00 S 7.752.00 40 @ $ 11.80 40 @ $ 15.40 S = 30 @ $ 20.40 = 380 @ = 612.00 $ 1.700.00 October 26 110 S 25.40 S 40 @ 40 @ 301 @ $ 11.80 = $ 15.40 = $ 20.40 = $ 25.40 472.00 616.00 612.00 2.794.00 110 @ Totals S 13.678.00 S 4.494.00 Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Required 3 Compute the gross margin for FIFO method and LIFO method. Sales revenue Less: Cost of goods sold Gross margin FIFO: S 48,174 20.774 S 27,400 LIFO: S 48.174 21,474 S 26,700
