[The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Jan.

1

Beginning inventory

250

units

@ $12.00

=

$

3,000

Jan.

10

Sales

200

units

@ $42.00

Mar.

14

Purchase

400

units

@ $17.00

=

6,800

Mar.

15

Sales

360

units

@ $42.00

July

30

Purchase

450

units

@ $22.00

=

9,900

Oct.

5

Sales

420

units

@ $42.00

Oct.

26

Purchase

150

units

@ $27.00

=

4,050

Totals

1,250

units

$

23,750

980

units

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.

3 ! Required information (The following information applies to the questions displayed below.] Part 1 of 2 Hemming Co. reported the following current-year purchases and sales for its only product. Units Sold at Retail 1 points Units Acquired at Cost 250 units @ $12.00 $ 3,000 200 units @ $42.00 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar.14 Purchase Mar.15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase 400 units @ $17.00 6,800 360 units @ $42.00 eBook 450 units @ $22.00 = 9,900 420 units @ $42.00 Hint = 150 units @ $27.00 1,250 units 4,050 $23,750 Totals 980 units Print References 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 information 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 Cost of Goods Sold # of units Cost per Date Cost per unit # of units sold Cost per unit Inventory Balance # of units Inventory unit Balance Cost of Goods Sold January 1 250 $ 12.00 = $ 3,000.00 January 10 March 14 March 15 July 30 March 15 July 30 October 5 October 26 Totals $ 0.00 Required information 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 units unit Cost per Cost of Goods Sold # of units Cost of Goods sold unit Sold Cost per Cost per Date Inventory Balance # of units Inventory unit Balance 250 @ $ 12.00 = $ 3,000.00 January 1 January 10 March 14 March 15 July 30 3 O Required information Part 1 of 2 March 15 1 points July 30 eBook Hint October 5 Print References October 26 Totals $ 0.00 Complete this questions by entering your answers in the below tabs. 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