Hemming Co. reported the following current-year purchases and sales for its only product. Exercise 6-7...
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Hemming Co. reported the following current-year purchases and sales for its only product. Exercise 6-7 Perpetual: Inventory costing methods-FIFO and LIFO Date Units Sold at Retail Units Acquired at Cost 200 units @ $10 = $ 2,000 150 units @ $40 350 units @ $15 - 5,250 Jan. Jan. 10 Mar. 14 Mar. 15 July 30 Oct. 5 Oct 26 Activities Beginning inventory ........ Sales ............. Purchase ................ Sales ............ Purchase ........ Sales .............. Purchase ............. Totals ............ . 300 units @ $40 450 units @ $20 - 9,000 430 units @ $40 100 units @ $25 - 1,100 units 2,500 $18,750 880 units Check Ending inventory: LIFO, $4,150 Required Hemming uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. Compute the gross margin for each method. (Round amounts to cents.)
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