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

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 profit for each method.

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline Date & Activities & Units & Acquir & red at & Cost & & Units Sold at & Re & tail \\ \hline January 1 & Beginning inventory & 200 units & a & $10 & = & $2,000 & & & \\ \hline January 10 & Sales & & & & & & 150 units & a & $40 \\ \hline March 14 & Purchase & 350 units & a & $15 & = & 5,250 & & & \\ \hline March 15 & Sales & & & & & & 300 units & a & $40 \\ \hline July 30 & Purchase & 450 units & a & $20 & = & 9,000 & & & \\ \hline October 5 & Sales & & & & & & 430 units & a & $40 \\ \hline \multirow[t]{2}{*}{ October 26} & Purchase & 100 units & a & $25 & = & 2,500 & & & \\ \hline & Totals & 1,100 units & & & & $18,750 & 880 units & & \\ \hline \end{tabular} a) Periodic FIFO \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{3}{*}{ Beginning inventory } & \multicolumn{5}{|c|}{ Cost of Goods Available for Sale } & \multicolumn{4}{|c|}{ Cost of Goods Sold } & \multicolumn{3}{|c|}{ Ending Inventory } \\ \hline & \multirow{2}{*}{#ofunits200} & \multicolumn{2}{|c|}{Costperunit} & \multicolumn{2}{|c|}{CostofGoodsAvailableforSale} & \multirow{2}{*}{\begin{tabular}{|r|} #ofunitssold \\ 200 \\ \end{tabular}} & Costperunit & \multicolumn{2}{|c|}{CostofGoodsSold} & #ofunitsinendinginventory & \multirow[t]{2}{*}{Costperunit} & EndingInventory \\ \hline & & $ & 10.00 & $ & 2,000 & & $10.00 & $ & 2,000 & 0 & & \\ \hline \multicolumn{13}{|l|}{ Purchases: } \\ \hline March 14 & 350 & $ & 15.00 & & 5,250 & 350 & $15.00 & & 5,250 & & & \\ \hline July 30 & 450 & $ & 20.00 & & 9,000 & & & & & & & \\ \hline October 26 & 100 & $ & 25.00 & & 2,500 & 0 & & & & & & \\ \hline Total & 1,100 & & & $ & 18,750 & 550 & & $ & 7,250 & 0 & & $ \\ \hline \end{tabular} b) Periodic LIFO \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{3}{*}{ Beginning inventory } & \multicolumn{5}{|c|}{ Cost of Goods Available for Sale } & \multicolumn{3}{|c|}{ Cost of Goods Sold } & \multicolumn{3}{|c|}{ Ending Inventory } \\ \hline & \multirow{2}{*}{#ofunits200} & \multicolumn{2}{|c|}{Costperunit} & \multicolumn{2}{|c|}{CostofGoodsAvailableforSale} & \multirow[t]{2}{*}{#ofunitssold} & \multirow[t]{2}{*}{Costperunit} & \multirow[t]{2}{*}{CostofGoodsSold} & \multirow[t]{2}{*}{#ofunitsinendinginventory} & \multirow[t]{2}{*}{Costperunit} & \multirow[t]{2}{*}{EndingInventory} \\ \hline & & $ & 10.00 & $ & 2,000 & & & & & & \\ \hline \multicolumn{12}{|l|}{ Purchases: } \\ \hline March 14 & 350 & $ & 15.00 & & 5,250 & & & & & & \\ \hline July 30 & 450 & $ & 20.00 & & 9,000 & & & & & & \\ \hline October 26 & 100 & $ & 25.00 & & 2,500 & & & & & & \\ \hline Total & 1,100 & & & $ & 18,750 & 0 & & $ & 0 & & $ \\ \hline \end{tabular} c) Gross Profit \begin{tabular}{|c|c|c|c|c|} \hline & \multicolumn{2}{|c|}{ FIFO } & & IFO \\ \hline Sales & $ & 35,200 & $ & 35,200 \\ \hline Cost of goods sold & & 13,850 & & \\ \hline Gross profit & $ & 21,350 & & \\ \hline \end{tabular}

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