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

225

units

@ $11.00

=

$

2,475

Jan.

10

Sales

150

units

@ $41.00

Mar.

14

Purchase

340

units

@ $16.00

=

5,440

Mar.

15

Sales

300

units

@ $41.00

July

30

Purchase

425

units

@ $21.00

=

8,925

Oct.

5

Sales

395

units

@ $41.00

Oct.

26

Purchase

125

units

@ $26.00

=

3,250

Totals

1,115

units

$

20,090

845

units

Exercise 5-9 (Algo) Specific identification LO P1

Hemming uses a periodic inventory system. Ending inventory consists of 65 units from the March 14 purchase, 80 units from the July 30 purchase, and all 125 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 Date Ending Inventory Ending Inventory Cost Per Unit Cost Activity # of units Cost Per Unit # of units sold Cost Per Unit Ending Inventory Units COGS 225 Jan. 1 Mar. 14 Beginning Inventory Purchase Purchase July 30 Oct. 26 340 425 125 1,115 Purchase b) Gross Margin using Specific Identification Less: Equals