1)

Hemming Company reported the following current-year purchases and sales for its only product.

Date	Activities	Units Acquired at Cost					Units Sold at Retail
January 1	Beginning inventory	300	units	@ $14.00	=	$ 4,200
January 10	Sales						250	units	@ $44.00
March 14	Purchase	520	units	@ $19.00	=	9,880
March 15	Sales						460	units	@ $44.00
July 30	Purchase	500	units	@ $24.00	=	12,000
October 5	Sales						480	units	@ $44.00
October 26	Purchase	200	units	@ $29.00	=	5,800
	Totals	1,520	units			$ 31,880	1,190	units

Ending inventory consists of 50 units from the March 14 purchase, 80 units from the July 30 purchase, and all 200 units from the October 26 purchase. Using the specific identification method, calculate the following.

a) Cost of goods sold using specific identification

b) gross margin using specific identification

2)

Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Monson uses a perpetual inventory system. Also, on December 15, Monson sells 18 units for $10 each.

Purchases on December 7	8 units @ $4.00 cost
Purchases on December 14	26 units @ $6.00 cost
Purchases on December 21	18 units @ $7.00 cost

Of the units sold, 6 are from the December 7 purchase and 12 are from the December 14 purchase. Determine the costs assigned to ending inventory when costs are assigned based on specific identification.