Question

Required information [The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 220 units @ $10.80 = $ 2,376 Jan. 10 Sales 190 units @ $40.80 Mar. 14 Purchase 330 units @ $15.80 = 5,214 Mar. 15 Sales 280 units @ $40.80 July 30 Purchase 420 units @ $20.80 = 8,736 Oct. 5 Sales 390 units @ $40.80 Oct. 26 Purchase 120 units @ $25.80 = 3,096 Totals 1,090 units $ 19,422 860 units Required: Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 40 units from the March 14 purchase, 70 units from the July 30 purchase, and all 120 units from the October 26 purchase. Using the specific identification method, calculate the following.

Answer 1

Specific Identification Method Ending Inventory Ending Inventor unit goods No of units Cost per Cost of goods Available for sale Cost of Goods sold Cost of No of Cost per Activity Units Unit cost units | unit sold Beginning inventory 220 10.80 220 10.80 2376 Purchase 330 15.80 290) 15.80 4582 Purchase 420 20.80 350 20.80 7280 Purchase 120 25. 800 25. 800 1090 860 14238 10.80 15.80 Jan-01 Mar-14 Jul-30 Oct-26 Total 632 70 120 230 20.80 1456 25.803096 5184 Requirement: B Sales Less: Cost of goods sold Gross profit 35088 14238 20850