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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

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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 Acquired at Cost 210 units $10.40 $ 2.184 Units Sold at Retail 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 1.040 units $25.40 - 2,794 $18, 116 Totals 820 units Exercise 5-7 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 margin for each method. Required A Required B Required C Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 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 Cost per sold unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory Purchases: March 14 July 30 October 26 Total Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. b) Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units of units per unit Cost Cost of Goods Available for # of units Cost per sold unit Cost of Goods Sold # of units in ending inventory Cost Ending per unit Inventory Sale Beginning inventory Purchases: March 14 July 30 October 26 Total Required A Required B Required Compute the gross margin for each method. c) Gross Margin FIFOLIFO

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