[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.

Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: Inventory Balance Cost of Goods Sold Goods Purchased Cost per unit Cost per unit Cost of Goods Sold Cost per unit #of #of units sold Inventory Balance # of units Date units 295 January 1 $13.80 4,071.00 240 January 10 55 $3,312.00 759.00 $13.80 $13.80 March 14 480@ 55 759.00 $18.80 $13.80 $18.80 759.00 March 15 0@ $13.80 0.00 0@ $18.80 0.00 July 30 Required information July 30 October 5 October 26 $3,312.00 Totals Perpetual LIFO: Goods Purchased Cost of Goods Sold Inventory Balance Cost per unit Cost per unit #of of units sold Cost per unit Cost of Goods Sold Inventory Balance # of units Date units January 1 295 $ 4,071.00 $13.80 January 10 March 14 March 15 July 30 Required information March 15 July 30 October 5 October 26 Totals 0.00 Required information 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