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  1. business
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  3. 3.) [the following information applies to the ques

3.) [The following information applies to the questions displayed below.] Hemming Company reported the following...

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Accounting

3.)

[The following information applies to the questions displayed below.]

Hemming Company reported the following current-year purchases and sales for its only product.

Date Activities Units Acquired at Cost Units Sold at Retail
January 1 Beginning inventory 235 units @ $11.40 = $ 2,679
January 10 Sales 170 units @ $41.40
March 14 Purchase 360 units @ $16.40 = 5,904
March 15 Sales 290 units @ $41.40
July 30 Purchase 435 units @ $21.40 = 9,309
October 5 Sales 410 units @ $41.40
October 26 Purchase 135 units @ $26.40 = 3,564
Totals 1,165 units $ 21,456 870 units

Required:

Hemming uses a perpetual inventory system.

  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 profit for FIFO method and LIFO method.

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