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  3. hemming co. reported the following current-year pu

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

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Accounting

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

Date Activities Units Acquired at Cost Units Sold at Retail
Jan. 1 Beginning inventory 230 units @ $11.20 = $ 2,576
Jan. 10 Sales 160 units @ $41.20
Mar. 14 Purchase 350 units @ $16.20 = 5,670
Mar. 15 Sales 320 units @ $41.20
July 30 Purchase 430 units @ $21.20 = 9,116
Oct. 5 Sales 400 units @ $41.20
Oct. 26 Purchase 130 units @ $26.20 = 3,406
Totals 1,140 units $ 20,768 880 units

Exercise 5-9A Periodic: Inventory costing system LO P3

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.

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