Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. Units Acquired at Cost 220 units @ $10.80 = $ 2,376 Units Sold at Retail 190 units @ $40.80 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales Oct.26 Purchase 330 units @ $15.80 5,214 280 units @ $40.80 420 units @ $20.80 8,736 390 units @ $40.80 120 units @ $25.80 1,090 units 3,096 $19, 422 Totals 860 units Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 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 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 # of Cost per units unit Cost of Goods Sold Cost per Cost of Goods # of units sold unit Sold Date Inventory Balance Cost per Inventory # of units unit Balance 220 @ $ 10.80 = $ 2,376.00 January 1 January 10 190 @ $ 10.80 = $ 2,052.00 30 @ $ 10.80 = $ 324.00 March 14 330 @ $ 15.80 $ 324.00 30 @ 10 @ $ 10.80 = $ 15.80 = 158.00 $ 482.00 March 15 = $ 324.00 30 @ 250 @ $ 10.80 $ 15.80 $ 10.80 = $ 15.80 = 11 80 @ 3,950.00 $ 4,274.00 1,264.00 $ 1,264.00 le 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 Cost of Goods Sold # of Cost per Cost per Cost of Goods # of units sold units unit unit Sold Date Inventory Balance Cost per Inventory # of units unit Balance 220 @ $ 10.80 = $ 2,376.00 January 1 0 $ 25.80 $ 0.00 220 @ $ 10.80 = $ 2,376.00 January 10 March 14 330 @ $ 15.80 220 @ 320 @ $ 10.80 = $ 15.80 = $ 2,376.00 5,056.00 $ 7,432.00 March 15 11 280 @ $ 10.80 $ 15.80 $ 3,024.00 0.00 $ 3,024.00 @e) $ 10.80 = $ 15.80 = July 30 7 MAA Required information @ $ 15,80 11 0.00 @ $ 15.80 $ 3,024.00 July 30 October 5 70 October 26 120 @ $ 25.80 220 10 $ 25.80 Totals $ 3,024.00 Required information 3. Compute the gross margin tor FIFO method and LIFO method. 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. Sales revenue Less: Cost of goods sold Gross margin FIFO: LIFO: $ 35,088 $ 35,088 14,038 16,888 $ 21,050 $ 18,200
