Question

home. Iry improved features and snip like usual w & Sketch Try Snip &Sketch Hemming Co. reported the following current-year purchases and sales data for its only product. Activities Units Sold at Retail Date Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct Units Acquired at Cost 175 units @$13.00 $ 2,275 165 units @ $43.00 325 units @ $18.00 5,850 @ $43.00 215 units 475 units 10,925 @ $23.00 225 units 5 Sales @ $43.00 675 units Oct. 26 Purchase @$28.00 18,900 $ 37,950 605 units 1,650 units Totals Required: Hemming uses a periodic inventory system. Assume that ending inventory consists of 120 units from the March 14 purchase, 250 units from the July 30 purchase, and all 675 units from the October 26 purchase. Using the specific identification method, compute the following. (Round cost per unit to 2 decimal places.) a) Cost of Goods Sold using Specific Identification Ending Inventory Available for Sale Cost of Goods Sold Ending Inventory Unit Cost Units Ending Inventory Cost Unit Cost Units Sold COGS Date Activity Units Unit Cost 175 13.00 $2,275.00 0 13.00 $ 18.00 Jan. 1 175 13.00 Beginning inventory Mar. 14 325$ 18.00 Purchase 18.00 $ 23.00 475 $ 23.00 July 30 Purchase $ 23.00 Oct. 26 675 28.00 Purchase 28.00 28.00 2,275.00 1.650 175 0 $ 0.00 b) Gross Margin using Specific Identification Less Equals Activate Windows

Answer 1

Specific Identification Method Available for sale Cost of Goods sold Ending Inventory Cost per Cost of goods Cost per No of Cost per Ending No of No of units units unit unit sold units unit Inventory Jan-01 Beginning inventory Mar-14 Purchases Jul-30 Purchases Oct-26 Purchases 13.00 13.00 13.00 175 175 2275 0 0 205 18.00 325 18.00 18.00 3690 120 2160 23.00 225 475 23.00 5175 250 23.00 5750 675 28.00 0 28.00 0 675 28.00 18900 Total 1650 605 11140 1045 26810 Sales 26015 Cost of goods sold Less: 11140 Equals Gross profit 14875