Use the following information for the Exercises $8-10$ below. $($Algo$)$ Compute the gross profit for FIFO method and LIFO method.

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Hemming Company reported the following current$-$year purchases and sales for its only product.

Date Activities Units Acquired at Cost Units Sold at Retail

January $1$ Beginning inventory $260$ units @ $$12\mathrm{.}40=$ $ $3,224$

January $10$ Sales $215$ units @ $$42\mathrm{.}40$

March $14$ Purchase $420$ units @ $$17\mathrm{.}40=7,308$

March $15$ Sales $380$ units @ $$42\mathrm{.}40$

July $30$ Purchase $460$ units @ $$22\mathrm{.}40=10,304$

October $5$ Sales $425$ units @ $$42\mathrm{.}40$

October $26$ Purchase $160$ units @ $$27\mathrm{.}40=4,384$

Totals $1,300$ units $ $25,2201,020$ units

Exercise $5-8($Algo$)$ Perpetual: Inventory costing methods$$FIFO and LIFO LO P$1$

Required:

Hemming uses a perpetual inventory system.

Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.

Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.

Compute the gross profit for FIFO method and LIFO method.