Hemming Co. reported the below current year purchases and sales for its one product.

Date

Activities

Units Acquired at Cost

Retail Units

Ene.

1

Initial inventory

230

units

@ $11.20

=

ps

2,576

Ene.

10

Sales

160

units

@ $41.20

Mar.

14

Purchase

350

units

@ $16.20

=

5,670

Mar.

15

Sales

320

units

@ $41.20

Julio

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

ps

20,768

880

units

Required :
Hemming uses a perpetual inventory system.

1. Determine costs allocated to ending inventory and cost of goods sold using FIFO.
2. Determine costs allocated to ending inventory and cost of goods sold using LIFO.
3. Calculate the gross margin for the FIFO method and the LIFO method.

Determine the costs allocated to ending inventory and cost of goods sold using FIFO.

FIFO perpetual:

purchased goods

cost of goods sold

inventory balance

Date

# of units

Cost per unit

# of units sold

Cost per unit

cost of goods sold

# of units

Cost per unit

inventory balance

January 1st

230

@

$11.20

=

$2,576.00

January 10

March 14

March, 15th

July 30

October 5th

October 26th

Totals

$0.00