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[The following information applies to the questions displayed below.]

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

Date

January 1

January 10

March 14

March 15

July 30

October 5

October 26

a) Periodic FIFO

Beginning inventory

Purchases:

March 14

July 30

October 26

Total

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.

b) Periodic LIFO

Beginning inventory

Purchases:

March 14

July 30

October 26

Activities

Beginning inventory

Sales

Purchase

Sales

Purchase

Sales

Purchase

Totals

Total

c) Gross profit

# of units

FIFO

Cost of Goods Available for Sale

# of units

0

Cost per unit

245 units

390 units

445 units

145 units

1,225 units

Cost per unit

Units Acquired at Cost

@$11.80 =

@$16.80 =

@ $21.80 =

@ $26.80 =

LIFO

Cost of Goods Available for Sale

Cost of Goods

Available for Sale

$

Cost of Goods

Available for Sale

$

0

$ 2,891

6,552

9,701

3,886

$23.030

0

Units Sold at Retail

190 units

@$41.80

@$41.80

350 units

430 units

@ $41.80

970 units

Cost of Goods Sold

0

# of units sold Cost per unit

Cost of Goods

Sold

# of units sold Cost per unit

$

Cost of Goods Sold

Cost of Goods

Sold

$

0

# of units in ending

inventory

0

# of units in ending

inventory

0

Ending Inventory

Cost per unit

Ending Inventory

Cost per unit

Ending Inventory

$

Ending Inventory

$

0

0