Required Information [The following Information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Activities Date January 1 January 10 Beginning inventory Sales March 14 Purchase Units Acquired at Cost 220 units @ $10.80 = 330 units @ $15.80 = Units sold at Retail $ 2,376 190 units @$40.80 5,214 March 15 Sales 280 units @ $40.80 July 30 October 5 October 26 Purchase Sales Purchase Totals 420 units 120 units 1,090 units @ $20.80 = @ $25.80 = 8,736 390 units @ $40.80 3,096 $ 19,422 860 units Ending Inventory consists of 40 units from the March 14 purchase, 70 units from the July 30 purchase, and all 120 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 # of units Cost Per Unit # of units sold Cost Per Unit Cost of Goods Sold Ending Inventory Units Cost Per Unit Ending Inventory Cost January 1 Beginning Inventory 220 S 10.80 220 $ 10.80 $ 2,376 $ 10.80 0 March 14 Purchase 330 S 15.80 290 $ 15.80 4,582 40 $ 15.80 632 July 30 Purchase 420 S 20.80 350 $ 20.80 7,280 70 $ 20.80 1,456 October 26 Purchase 120 S 25.80 1,090 0 $ 25.80 0 120 $ 25.80 3,096 860 $ 14,238 230 $ 5,184 b) Gross Margin using Specific Identification Beginning inventory Less: Ending inventory Equals: Gross profit $ 2,376 5,184