[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 200 units @ $10 = $ 2,000 150 units @ $40 350 units @ $15 5,250 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 300 units @ $40 450 units @ $20 9,000 430 units @ $40 @ $25 100 units 1,100 units 2,500 $18,750 880 units 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. a) Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Cost per Cost of Goods # of units Cost per Cost of # of units unit Available for Sale sold unit Goods Sold 2007 $ 10.00 $ 2,000 Ending Inventory # of units Cost Ending in ending Inventory per unit Inventory Beginning inventory Purchases March 14 July 30 October 26 Total 350 $ 450 $ 100 $ 1.100 15.00 20.00 25.00 5,250 9,000 2,500 18.750 0 0 0 b) Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Cost per Cost of Goods # of units # of units Cost per Cost of unit Available for sold unit Sale Goods Sold 200 $ 10.00 $ 2,000 Ending Inventory # of units Cost Ending in ending per unit Inventory Inventory Beginning inventory Purchases March 14 July 30 October 26 Total 350 $ 450 $ 100 $ 15.00 20.00 5,250 9,000 2,500 25.00 1,100 $ 18,750 0 $ 0 0 $ 0 ng Dr c SEE c) Gross Margin FIFO LIFO