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 | | 220 | units | @ $10.80 | = | $ | 2,376 | | | | | |
| Jan. | 10 | | Sales | | | | | | | | | 190 | units | @ $40.80 | |
| Mar. | 14 | | Purchase | | 330 | units | @ $15.80 | = | | 5,214 | | | | | |
| Mar. | 15 | | Sales | | | | | | | | | 280 | units | @ $40.80 | |
| July | 30 | | Purchase | | 420 | units | @ $20.80 | = | | 8,736 | | | | | |
| Oct. | 5 | | Sales | | | | | | | | | 390 | units | @ $40.80 | |
| Oct. | 26 | | Purchase | | 120 | units | @ $25.80 | = | | 3,096 | | | | | |
| | | | Totals | | 1,090 | units | | | $ | 19,422 | | 860 | units | | |
|
Required:
Hemming uses a periodic inventory system.
(a) Determine the costs assigned to ending inventory and to cost ofgoods sold using FIFO.
(b) Determine the costs assigned to ending inventory and to costof goods sold using LIFO.
(c) Compute the gross margin for each method.
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 | | 220 | units | @ $10.80 | = | $ | 2,376 | | | | | |
| Jan. | 10 | | Sales | | | | | | | | | 190 | units | @ $40.80 | |
| Mar. | 14 | | Purchase | | 330 | units | @ $15.80 | = | | 5,214 | | | | | |
| Mar. | 15 | | Sales | | | | | | | | | 280 | units | @ $40.80 | |
| July | 30 | | Purchase | | 420 | units | @ $20.80 | = | | 8,736 | | | | | |
| Oct. | 5 | | Sales | | | | | | | | | 390 | units | @ $40.80 | |
| Oct. | 26 | | Purchase | | 120 | units | @ $25.80 | = | | 3,096 | | | | | |
| | | | Totals | | 1,090 | units | | | $ | 19,422 | | 860 | units | | |
|
