Required information Use the following information for the Exercises below. [The following information applies to the questions displayed...

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Accounting

Required information
Use the following information for the Exercises below.
[The following information applies to the questionsdisplayed below.]

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

Date Activities Units Acquired at Cost Units Sold at Retail
Jan. 1 Beginning inventory 260 units @ $12.40 = $ 3,224
Jan. 10 Sales 215 units @ $42.40
Mar. 14 Purchase 420 units @ $17.40 = 7,308
Mar. 15 Sales 380 units @ $42.40
July 30 Purchase 460 units @ $22.40 = 10,304
Oct. 5 Sales 425 units @ $42.40
Oct. 26 Purchase 160 units @ $27.40 = 4,384
Totals 1,300 units $ 25,220 1,020 units
Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFOLO P1
Required:
Hemming uses a perpetual inventory system.

1. Determine the costs assigned to endinginventory and to cost of goods sold using FIFO.
2. Determine the costs assigned to endinginventory and to cost of goods sold using LIFO.
3. Compute the gross margin for FIFO method andLIFO method.

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FIFO transaction purchase cost of goods sold balanced inventory date unit rate per unit total unit rate per unit total unit rate per unit total 01Jan beginning 260 124 3224 260 124 3224 10Jan sale 215 124 2666 45 124 558 14Mar purchase 420 174 See Answer

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