Required information
Use the following information for the Exercises below.
[The following information applies to the questionsdisplayed below.]
Hemming Co. reported the following current-year purchases and salesfor its only product.
| Date | Activities | Units Acquired at Cost | Units Sold at Retail |
| Jan. | 1 | | Beginning inventory | | 260 | units | @ $12.40 | = | $ | 3,224 | | | | | |
| Jan. | 10 | | Sales | | | | | | | | | 215 | units | @ $42.40 | |
| Mar. | 14 | | Purchase | | 420 | units | @ $17.40 | = | | 7,308 | | | | | |
| Mar. | 15 | | Sales | | | | | | | | | 380 | units | @ $42.40 | |
| July | 30 | | Purchase | | 460 | units | @ $22.40 | = | | 10,304 | | | | | |
| Oct. | 5 | | Sales | | | | | | | | | 425 | units | @ $42.40 | |
| Oct. | 26 | | Purchase | | 160 | units | @ $27.40 | = | | 4,384 | | | | | |
| | | | Totals | | 1,300 | units | | | $ | 25,220 | | 1,020 | units | | |
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Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFOLO P1
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.
