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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

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.

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

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.

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