Use the following information for the Exercises below. [Thefollowing information applies to the questions displayed below.]Hemming Co. reported the following current-year purchases and salesfor its only product. Date Activities Units Acquired at Cost UnitsSold at Retail Jan. 1 Beginning inventory 300 units @ $14.00 = $4,200 Jan. 10 Sales 250 units @ $44.00 Mar. 14 Purchase 520 units @$19.00 = 9,880 Mar. 15 Sales 460 units @ $44.00 July 30 Purchase500 units @ $24.00 = 12,000 Oct. 5 Sales 480 units @ $44.00 Oct. 26Purchase 200 units @ $29.00 = 5,800 Totals 1,520 units $ 31,8801,190 units Exercise 6-7 Perpetual: Inventory costing methods-FIFOand LIFO LO P1 Required: Hemming uses a perpetual inventory system.1. Determine the costs assigned to ending inventory and to cost ofgoods sold using FIFO. 2. Determine the costs assigned to endinginventory and to cost of goods sold using LIFO. 3. Compute thegross margin for FIFO method and LIFO method.
