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 margin for each method.

(a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.

Cost of Inventory 4,900

Cost of goods sold 13850

(b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.

Cost of Inventory 6,300

Cost of goods sold 12450

(c) Compute the gross margin for each method.

Sales = 36,000

FIFO

Gross profit Margin = (36000 - 13850) / 36000 = 61.5%

Gross profit Margin = (36000 - 12450) / 36000 = 65.4%

Explanation:

The working is attached in an MS Excel file with this answer. Please find it.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101