Hemming uses a periodic inventory system. Assume that ending inventory is consists of 40 units from the March 14 purchase, 70 units from the July 30 purchase, and all 115 units from the October 26 purchase. Using the specific identification method, calculate the (a) the cost of goods sold and (b) the gross profit.

Hemming Co. reported the following current-year purchases and sales for its only product. Units Sold at Retail Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Units Acquired at Cost 215 units @ $10.60 = $ 2,279 180 units @ $40.60 Mar. 14 Purchase 320 units @ $15.60 = 4,992 Mar. 15 Sales 260 units @ $40.60 415 units @ $20.60 8,549 July 30 Purchase Oct. 5 Sales 400 units @ $40.60 Oct. 26 Purchase 115 units @ $25.60 = 2,944 Totals 1,065 units $18,764 840 units Cost of Goods Sold Gross Profit Calculate the cost of goods sold. 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 Unit Cost Units Ending Inventory Cost Jan. 1 Beginning Inventory 215 $ 0.00 $ 0 $ 0.00 $ Mar. 14 Purchase 320 $ 0.00 0 $ 0.00 Oo oo July 30 Purchase 415 $ 0.00 0 $ 0.00 Oct. 26 Purchase 115 $ 0.00 0 $ 0.00 1,065 0 $ 0 0 $ 0 Cost of Goods Sold Gross Profit Calculate the gross profit. b) Gross Margin using Specific Identification Less: Equals