Use the following information for the Exercises below. The following information

Question

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. Jan. 1 Beginning inventory Jan. 10 Sales Har. 14 Purchase Mar.15 Sales July30 Purchase Oct. 5 Sales Oct. 26 Purchase 270 units $12.803.456 400 units $17.807,120 470 units $22.80 10,716 170 units @ $27.80 · 4.726 220 units $42.80 340 units $42.80 440 units @ $42.80 · 1,310 units $26,018 1,000 units Totals Exercise 5-8 Specific identification LO P1 Required: Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 55 units from the March 14 p units from the July 30 purchase, and af 170 units from the October 26 purchase. Using the specific identification methoo following ) Cost of Goods Sold using Specific Identification Available for Sale Cost of Goods Sold Ending Inventory Date nisU Ending Ending Activity Units UnitUn Unit Cost COGS Inventory Unit Cost Inventory Cost Sold Units Cost 070

Explanation / Answer

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 270 $12.80 270 12.8 3456 0 12.8 0 Mar. 14 Purchase 400 $17.80 345 17.8 6141 55 17.8 979 July 30 Purchase 470 $22.80 385 22.8 8778 85 22.8 1938 Oct. 26 Purchase 170 $27.80 0 27.8 0 170 27.8 4726 1310 1000 18375 310 7643 b) Gross Margin using Specific Identification Sales $42,800 Less: Cost of goods sold -18,375 Equals: Gross margin $24,425

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