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

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Jan.

1

Beginning inventory

100

units

@ $10.00

=

$

1,000

Jan.

10

Sales

90

units

@$40.00

Mar.

14

Purchase

250

units

@ $15.00

=

3,750

Mar.

15

Sales

140

units

@$40.00

July

30

Purchase

400

units

@ $20.00

=

8,000

Oct.

5

Sales

300

units

@$40.00

Oct.

26

Purchase

600

units

@ $25.00

=

15,000

Totals

1,350

units

$

27,750

530

units

Assume that ending inventory is made up of 100 units from the March 14 purchase, 120 units from the July 30 purchase, and all 600 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
Date	Activity	Units	Unit Cost	Units Sold	Unit Cost	COGS	Ending Inventory Units	Unit Cost	Ending Inventory Cost
Jan. 1	Beginning Inventory	100
Mar. 14	Purchase	250
July 30	Purchase	400
Oct. 26	Purchase	600
		1,350
b) Gross Margin using Specific Identification
Less:
Equals: