[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

295

units

@ $13.80

=

$

4,071

Jan.

10

Sales

240

units

@ $43.80

Mar.

14

Purchase

480

units

@ $18.80

=

9,024

Mar.

15

Sales

420

units

@ $43.80

July

30

Purchase

495

units

@ $23.80

=

11,781

Oct.

5

Sales

465

units

@ $43.80

Oct.

26

Purchase

195

units

@ $28.80

=

5,616

Totals

1,465

units

$

30,492

1,125

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.

Complete this questions by entering your answers in the below tabs.

• 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

Inventory Balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

Cost of Goods Sold

# of units

Cost per unit

Inventory Balance

January 1

295

@

$13.80

=

$4,071.00

January 10

240

@

$18.80

=

$4,512.00

$13.80

=

March 14

480

@

$18.80

@

$13.80

@

$18.80

March 15

420

July 30

October 5

October 26