Hemming Co. reported the following current-year purchases andsales 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 | | |
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Required:
Hemming uses a perpetual inventory system.
1. Determine the costs assigned to endinginventory and to cost of goods sold using FIFO.
2. Determine the costs assigned to endinginventory and to cost of goods sold using LIFO.
3. Compute the gross margin for FIFO method andLIFO method.
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| | Perpetual FIFO and LIFO Table: | | 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 | | | | | | | | | 250 | @ | $12.00 | = | $3,000.00 | | | January 10 | | | | | | | | | | | | | | | | March 14 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 15 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | July 30 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | October 5 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | October 26 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Totals | | | | | | | | $0.00 | | | | |
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