Question

Check my wor 3 Required information Use the following information for the Exercises below. (The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. Part 2 of 2 Units Sold at Retail Units Acquired at Cost 215 units @ $10.60 = $2,279 oints 180 units @ $40.60 320 units @ $15.60 4,992 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 260 units @ $40.60 415 units @ $20.60 8,549 400 units @ $40.60 eBook = 115 units @ $25.60 1,065 units 2,944 $18,764 840 units Hint Exercise 5-8 Specific identification LO P1 Ask References 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 115 units from the October 26 purchase. Using the specific identification method, calculate the following a) Cost of Goods Sold using Specific Identification Available for Sale Cost of Goods Sold Date Ending Inventory Ending Ending Inventory Unit Cost Inventory Units Cost Activity Unit Cost Units Units Sold Unit Cost COGS 215 320 Jan. 1 Mar. 14 July 30 Oct 26 Beginning Inventory Purchase Purchase Purchase 415 115 1,065 b) Gross Margin using Specific Identification Less Equals:

Answer 1

Answer

• Requirements asked

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	215	$                10.60	$                        2,279.00	215	$               10.60	$                 2,279.00	0	$                 10.60	$                         -
14-Mar	320	$                15.60	$                        4,992.00	280	$               15.60	$                 4,368.00	40	$                 15.60	$                624.00
30-Jul	415	$                20.60	$                        8,549.00	345	$               20.60	$                 7,107.00	70	$                 20.60	$            1,442.00
26-Oct	115	$                25.60	$                        2,944.00	0	$               25.60	$                              -	115	$                 25.60	$            2,944.00
TOTAL	1065		$                      18,764.00	840		$               13,754.00	225		$            5,010.00

Sales revenue = $ 840 units x $ 40.60 = $ 34,104
Less: Cost of Goods Sold = $ 13,754
Equals: Gross Margin = $ 20,350