6 Required information [The following information applies to the questions displayed below.] Part 2 of 2 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 245 units @ $11.80 = $ 2,891 6.35/16.7 Jan . 10 Sales Mar . 14 Purchase 390 units @ $16.80 5,552 190 units @ $41.80 points awarded Mar . 15 Sales 350 units @ $41.80 July 30 Purchase 445 units @ $21.80 9,701 8 01:47:07 Oct. 5 Sales 430 units @ $41.80 Oct . 26 Purchase 145 units @ $26.80 3,886 Scored Totals 1, 225 units $23, 030 970 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 145 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 Activity Units Unit Units Unit Ending Date Unit Ending Cost Sold Cost COGS Inventory Cost Inventory Units Cost Jan. 1 Beginning Inventory 245 11.80 190 x $ 11.80 $ 2.242 55 $ 11.80 $ 649 Mar. 14 Purchase 390 16.80 350 $ 16.80 5,880 95 x $ 16.80 1.596 July 30 Purchase 445 21.80 430 X $ 21.80 9.374 110 x $ 21.80 2,398 Oct. 2 Purchase 145 $ 26.80 25 $ 26.80 6.834 255 x $ 26.80 5,834 1,225 1,225 $ 24,330 515 11,477 b) Gross Margin using Specific Identification Cost of goods sold * 24,330 Less Ending inventory 11,477 Equals Gross margin 12,883 *