# Jan 10 sales 150 units 40 mar 14 purchase 350 mar 15

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Jan.10 Sales150 units@ \$40 Mar.14 Purchase350 units@ \$15= 5,250 Mar.15 Sales300 units@ \$40 July30 Purchase450 units@ \$20= 9,000 Oct.5 Sales430 units@ \$40 Oct.26 Purchase100 units@ \$25= 2,500 Totals1,100 units\$18,750880 unitsRequired: Hemming uses a Perpetual inventory system. (Round cost per unit to 2 decimal places.)(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 margin for each method.
January 10150@\$10.00=\$1,500.0050 @\$10.00=\$500.00March 14350 @\$15.0050 @\$10.00=\$500.00350 @\$15.00=5,250.00\$5,750.00March 15@\$10.00=\$0.0050 @\$10.00=\$500.00300@\$15.00=4,500.0050 @\$15.00=\$750.00\$4,500.00\$1,250.00July 30450 @\$20.0050 @\$10.00=\$500.0050 @\$15.00=750.00450 @\$20.00=9,000.00\$10,250.00October 5@\$10.00=\$0.0050 @\$10.00=\$500.00@\$15.00=0.0050 @\$15.00=750.00430@\$20.00=8,600.0020 @\$20.00=400.00\$8,600.00\$1,650.00October 26100 @\$25.0050 @\$10.00=\$500.0050 @\$15.00=750.0020 @\$20.00=400.00100 @\$25.002,500.00Totals\$14,600.00\$4,150.00c) Gross MarginFIFOLIFOSales\$35,200 \$35,200Cost of goods sold13,85014,600Gross margin\$21,350 \$20,600Explanation:(c) FIFO Gross margin