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Hemming Co. reported the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost 200 units @ $10 = $ 2,000 150 units @ $40 350 units @ $15 = 5,250 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase Totals 300 units @ $40 450 units @ $20 = 9,000 430 units @ $40 @ $25 100 units 1,100 units 2,500 $18,750 880 units Required: Hemming uses a periodic inventory system. (a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. (b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. (c) Compute the gross margin for each method. a) Periodic FIFO Cost of Goods Sold Cost of Goods Available for Sale Co Goods Cost per # of units Available for unit Sale 170 $ 10.40 $ 1,768 # of units Cost per unit sold Ending Inventory # of units Cost Ending in ending inventory per unit Inventory Cost of Goods Sold Beginning inventory Purchases: March 14 July 30 October 26 Total 170 $ 1,768 0 $ $ 0 b) Periodic LIFO Cost of Goods Sold # of units Cost of Goods Available for Sale Cost of Goods Cost per # of units Available for unit Sale 170 $ 10.40 $ 1,768 Cost per unit sold Ending Inventory # of units Cost in ending Ending per unit Inventory inventory Cost of Goods Sold Beginning inventory Purchases: March 14 July 30 October 26

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