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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 | | 230 | units | @ $11.20 | = | $ | 2,576 | | | | | |
| | Jan. | 10 | | Sales | | | | | | | | | 160 | units | @ $41.20 | |
| | Mar. | 14 | | Purchase | | 350 | units | @ $16.20 | = | | 5,670 | | | | | |
| | Mar. | 15 | | Sales | | | | | | | | | 320 | units | @ $41.20 | |
| | July | 30 | | Purchase | | 430 | units | @ $21.20 | = | | 9,116 | | | | | |
| | Oct. | 5 | | Sales | | | | | | | | | 400 | units | @ $41.20 | |
| | Oct. | 26 | | Purchase | | 130 | units | @ $26.20 | = | | 3,406 | | | | | |
| | | | | Totals | | 1,140 | units | | | $ | 20,768 | | 880 | units | | |
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Exercise 5-9A Periodic: Inventory costing system LO P3
Required: Hemming uses a periodic inventory system. (a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
(b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
(c) Compute the gross margin for each method.
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