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. Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 270 units @ $12.80 = $ 3,456 Jan. 10 Sales 220 units @ $42.80 Mar.14 Purchase 400 units @ $17.80 7,120 Mar.15 Sales 340 units @ $42.80 July30 Purchase 470 units @ $22.80 10, 716 Oct. 5 Sales 440 units @ $42.80 Oct.26 Purchase 170 units @ $27.80 4,726 Totals 1,310 units $26,018 1,000 units Date 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 # of Cost units per unit Cost of Goods Sold # of units Cost Cost of Goods sold per unit Sold Date Inventory Balance Cost # of units Inventory per unit Balance 270 @ $12.80 = $ 3,456.00 January 1 January 10 220 @ $12.80 = $ 2,816.00 220 @ $12.80 = $ 2,816.00 March 14 400 @ $ 17.80 70 @ $12.80 = $ 896.00 70 @ $17.80 = 1,246.00 $ 2,142.00 March 15 340 @ 11 $ 4,352.00 50 @ $12.80 = $ 640.00 @@ $ 12.80 $17.80 11 0.00 $ 4,352.00 $ 640.00 July 30 October 5 October 26 Totals $ 7,168.00 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 units per unit Cost of Goods Sold # of units Cost Cost of Goods sold per unit Sold Date January 1 January 10 Inventory Balance Cost # of units Inventory per unit Balance 270 @ $12.80 = $ 3,456.00 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