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 205 units @ $10.20 = $ 2,091 160 units @ $40.20 300 units @ $15.20 4,560 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 250 units @ $40.20 400 units @ $20.20 = 8,080 375 units @ $40.20 105 units @ $25.20 1,010 units 2,646 $17,377 785 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. Perpetual FIFO: Goods Purchased Cost Cost of Goods Sold # of units Cost Cost of Goods sold per Sold unit # of units Date per unit Inventory Balance Cost Inventory # of units per Balance unit $ 205 @ $ 2,091.00 10.20 January 1 January 10 160 @ $ 40.20 $ 6,432.00 0 x = March 14 300 @ $ 15.20 > 205 x @ $ 10.20 $ 10.20 $ 15.20 $ 2,091.00 300 @ = 4,560.00 $ 6,651.00 March 15 250 X @ $ 2,550.00 205 X @ $ 2,091.00 $ 10.20 $ 15.20 10.20 $ 15.20 300 x @ 4,560.00 300 X @ = $ 4,560.00 $ 7,110.00 $ 6,651.00 July 30 400 $ 20.20 205 @ $ 10.20 $ 2,091.00 300 X @ = 4,560.00 15.20 $ 20.20 400 @ 8,080.00 $14,731.00 October 5 205 X @ $ 2,091.00 205 x @ $ 2,091.00 $ 10.20 $ 15.20 $ 10.20 $ 15.20 300 x @ 4,560.00 300 x @ 4,560.00 $ October 5 205 x @ $ 2,091.00 205 x a $ 2,091.00 $ 10.20 $ 15.20 300 x @ 4,560.00 300 x 10.20 $ 15.20 $ 20.20 4,560.00 400 @ 8,080.00 400 x @ = 8,080.00 20.20 $ 14,731.00 $ 14,731.00 October 26 105 $ 25.20 205 x @ II $ 2,091.00 300 X @ 4,560.00 $ 10.20 $ 15.20 $ 20.20 $ 25.20 400 x @ Il 8,080.00 105 = 2,646.00 Totals $ 28,273.00 $ 17,377.00 Required 1 Required 2 Perpetual LIFO: Goods Purchased # of Cost per units unit Cost of Goods Sold # of units Cost Cost of Goods sold per Sold unit Date Inventory Balance Cost Inventory # of units per Balance unit 205 $ @ $ 2,091.00 10.20 January 1 January 10 160 $ 10.20 $ 1,632.00 45 @ $ 459.00 March 14 45 x @ $ 10.20 > 45 @ $ 10.20 $ 10.20 $ 10.20 = $ 459.00 50 X @ 510.00 $ 969.00 March 15 45 X @ $ 459.00 45 @ $ 459.00 $ 10.20 $ 10.20 $ 10.20 $ 10.20 300 X @ 3,060.00 50 @ = 510.00 $3,519.00 $ 969.00 July 30 400 @ 20. 45 @ $ 459.00 20.20 50 @ 510.00 10.20 $ 10.20 $ 20.20 400 @ 8,080.00 $ 9,049.00 October 5 45 @ $ 459.00 45 @ $ 459.00 $ 10.20 $ 10.20 S $ 10.20 $ 10.20 $ 50 X @ 510.00 50 @ = 510.00 $ October 5 45 Il $ 459.00 45 = $ 459.00 50 X @ $ 10.20 $ 10.20 $ 20.20 = 510.00 50 @ 510.00 10.20 $ 10.20 $ 20.20 400 X @ 8,080.00 25 = 505.00 $ 9,049.00 $ 1,474.00 October 26 105 a $ 26.20 45 $ 459.00 50 @ 510.00 $ 10.20 $ 10.20 $ 20.20 $ 26.20 25 @ = 505.00 105 2,751.00 Totals $ 4,225.00 14,200.00 Required 1 Required 3 > Perpetual FIFO: Goods Purchased Cost Cost of Goods Sold # of units Cost Cost of Goods sold per Sold unit # of units Date per unit Inventory Balance Cost Inventory # of units per Balance unit $ 205 @ $ 2,091.00 10.20 January 1 January 10 160 @ $ 40.20 $ 6,432.00 0 x = March 14 300 @ $ 15.20 > 205 x @ $ 10.20 $ 10.20 $ 15.20 $ 2,091.00 300 @ = 4,560.00 $ 6,651.00 March 15 250 X @ $ 2,550.00 205 X @ $ 2,091.00 $ 10.20 $ 15.20 10.20 $ 15.20 300 x @ 4,560.00 300 X @ = $ 4,560.00 $ 7,110.00 $ 6,651.00 July 30 400 $ 20.20 205 @ $ 10.20 $ 2,091.00 300 X @ = 4,560.00 15.20 $ 20.20 400 @ 8,080.00 $14,731.00 October 5 205 X @ $ 2,091.00 205 x @ $ 2,091.00 $ 10.20 $ 15.20 $ 10.20 $ 15.20 300 x @ 4,560.00 300 x @ 4,560.00 $ October 5 205 x @ $ 2,091.00 205 x a $ 2,091.00 $ 10.20 $ 15.20 300 x @ 4,560.00 300 x 10.20 $ 15.20 $ 20.20 4,560.00 400 @ 8,080.00 400 x @ = 8,080.00 20.20 $ 14,731.00 $ 14,731.00 October 26 105 $ 25.20 205 x @ II $ 2,091.00 300 X @ 4,560.00 $ 10.20 $ 15.20 $ 20.20 $ 25.20 400 x @ Il 8,080.00 105 = 2,646.00 Totals $ 28,273.00 $ 17,377.00 Required 1 Required 2