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. Activities Units Acquired at Cost Date Jan. 1 Beginning inventory Jan.10 Sales Mar.14 Purchase Mar.15 Sales July30 Purchase Oct. 5 Sales Oct. 26 Purchase 205 units 300 units 400 units 105 units $10.20$ 2,091 $15.204,560 $20.208,080 $25.202,646 Units Sold at Retail 160 units $40.20 250 units $40.20 375 units $40.20 Totals 1,010 units $17,377 785 units Requirec Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 45 units from the March 14 purchase, 75 units from the July 30 purchase, and all 105 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 Ending Inventory Unit Cost Units Unit Cost Ending Ending Date Activity Units Unit Cost COGS Inventory Unit Cost Inventory Units Cost

Answer 1

a) Cost of Goods Sold using Specific Identification
	Available for Sale			Cost of Goods Sold			Ending Inventory
Date	Activity	Units	Unit Cost	Units Sold	Unit Cost	COGS	Ending Inventory Units	Unit Cost	Ending Inventory Cost
Jan. 1	Beginning Inventory	205	$10.20	205	$10.20	2091		$10.20	0
Mar. 14	Purchase	300	$15.20	255	$15.20	3876	45	$15.20	684
July 30	Purchase	400	$20.20	325	$20.20	6565	75	$20.20	1515
Oct. 26	Purchase	105	$25.20		$25.20	0	105	$25.20	2646
		1010		785		12532	225		4845