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3.Award: 2 out of 2.00 points2 out of 2.00 points[The following information applies to the questions displayed below.]Hemming Co. reported the following current-year purchases and sales for its only product.DateActivitiesUnits Acquired at CostUnits Sold at RetailJan.1 Beginning inventory230 units@ $11.20=$ 2,576Jan. 10 Sales160 units@ $41.20Mar. 14 Purchase350 units@ $16.20=5,670Mar. 15 Sales320 units@ $41.20July 30 Purchase430 units@ $21.20=9,116Oct.5 Sales400 units@ $41.20Oct. 26 Purchase130 units@ $26.20=3,406Totals1,140 units$20,768880 unitsRequired:Hemming uses a perpetual inventory system.1.Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.2.Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.3.Compute the gross margin for FIFO method and LIFO method.Score:Score:10/10Points100%!Required 2Required 3"Complete this questions by entering your answers in the below tabs.Compute the gross margin for FIFO method and LIFO method.
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Unformatted text preview: Required 1 Required 2 Required 3 FIFO: LIFO: Sales revenue $ 36,256 # $ 36,256 # Less: Cost of goods sold (14,606) # (15,456) # Gross margin $ 21,650 $ 20,800 Required : Hemming uses a perpetual inventory system. 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 3. Compute the gross margin for FIFO method and LIFO method. ! Required 2 Required 3 " Complete this questions by entering your answers in the below tabs. Compute the gross margin for FIFO method and LIFO method. Required 1 Required 2 Required 3 $ $ FIFO: LIFO: Sales revenue 36,256 36,256 Less: Cost of goods sold 14,606 15,456 Gross margin $ 21,650 $ 20,800 F F Explanation: 3. FIFO Gross margin Sales revenue (880 units sold × $41.20 selling price) = $36,256 LIFO Gross margin Sales revenue (880 units sold ×$41.20 selling price) = $36,256...
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