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.

DateActivitiesUnits Acquired at CostUnits Sold at RetailJan.1Beginning inventory205units@ $10.20=$2,091Jan.10Sales160units@ $40.20Mar.14Purchase300units@ $15.20=4,560Mar.15Sales250units@ $40.20July30Purchase400units@ $20.20=8,080Oct.5Sales375units@ $40.20Oct.26Purchase105units@ $25.20=2,646Totals1,010units$17,377785units

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.