Question

Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 55 units from the March 14 purchase, 70 units from the July 30 purchase, and all 165 units from the October 26 purchase. Using the specific identification method, calculate the following.

Hemming Co. reported the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost 265 units @ $12.60 = $ 3,339 225 units @ $42.60 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase Totals 430 units @ $17.60 465 units @ $22.60 = = 7,568 10,509 370 units @ $42.60 440 units @ $42.60 = 165 units @ $27.60 1,325 units 4,554 $25,970 1,035 units

Answer 1

Answer

Specific Identification	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
1 Jan	265	$               12.60	$                        3,339.00	265	$               12.60	$                 3,339.00	0	$                 12.60	$                         -
14-Mar	430	$                17.60	$                        7,568.00	375	$               17.60	$                 6,600.00	55	$                 17.60	$                968.00
30-Jul	465	$                22.60	$                      10,509.00	395	$               22.60	$                 8,927.00	70	$                 22.60	$            1,582.00
26-Oct	165	$                27.60	$                        4,554.00	0	$               27.60	$                              -	165	$                 27.60	$            4,554.00
TOTAL	1325		$                      25,970.00	1035		$               18,866.00	290		$            7,104.00

	Specific Identification
Sales Revenue	$    44,091.00
Less: Cost of Goods Sold (as calculated above)	$    18,866.00
Gross Margin	$    25,225.00