Refer to the information in Exercise 6-8 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. (c) Compute the gross profit for each method.

Data From Exercise 6-8

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

Required

The company uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using 

(a) FIFO 

(b) LIFO. 

(c) Compute the gross profit for each method.

Transcribed Image Text:

Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory.... 200 units @ $10 = $ 2,000 Jan. 10 Sales... 150 units @ $40 Mar. 14 Purchase 350 units @ $15 = 5,250 Mar. 15 Sales.... 300 units @ $40 July 30 Oct. 5 Oct. 26 Purchase 450 units @ $20 = 9,000 Sales.... 430 units @ $40 Purchase 100 units @ $25= 1,100 units 2,500 $18,750 Totals 880 units