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3.)
[The following information applies to the questions displayed below.]
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 | 235 | units | @ $11.40 | = | $ 2,679 | | | |
| January 10 | Sales | | | | | | 170 | units | @ $41.40 |
| March 14 | Purchase | 360 | units | @ $16.40 | = | 5,904 | | | |
| March 15 | Sales | | | | | | 290 | units | @ $41.40 |
| July 30 | Purchase | 435 | units | @ $21.40 | = | 9,309 | | | |
| October 5 | Sales | | | | | | 410 | units | @ $41.40 |
| October 26 | Purchase | 135 | units | @ $26.40 | = | 3,564 | | | |
| | Totals | 1,165 | units | | | $ 21,456 | 870 | units | |
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.
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