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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

275

units

@ $13.00

=

$

3,575

Jan.

10

Sales

230

units

@ $43.00

Mar.

14

Purchase

450

units

@ $18.00

=

8,100

Mar.

15

Sales

400

units

@ $43.00

July

30

Purchase

475

units

@ $23.00

=

10,925

Oct.

5

Sales

455

units

@ $43.00

Oct.

26

Purchase

175

units

@ $28.00

=

4,900

Totals

1,375

units

$

27,500

1,085

units

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.

Perpetual FIFO: Goods Purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 275 @ $13.00 = $3,575.00 January 10 230 @ 45 @ March 14 450 @ $18.00 45 450 @ $18.00 = 8,100.00 $8,100.00 March 15 45 @ $18.00 = 0.00 @ July 30 475 @ $23.00 @ $23.00 October 5 October 26 175 @ $28.00 @ $28.00 Totals $0.00

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