Required information

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.] 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

290

units

@ $13.60

=

$

3,944

Jan.

10

Sales

260

units

@ $43.60

Mar.

14

Purchase

500

units

@ $18.60

=

9,300

Mar.

15

Sales

430

units

@ $43.60

July

30

Purchase

490

units

@ $23.60

=

11,564

Oct.

5

Sales

470

units

@ $43.60

Oct.

26

Purchase

190

units

@ $28.60

=

5,434

Totals

1,470

units

$

30,242

1,160

units

Required: Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 40 units from the March 14 purchase, 80 units from the July 30 purchase, and all 190 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	290
Mar. 14	Purchase	500
July 30	Purchase	490
Oct. 26	Purchase	190
		1,470
b) Gross Margin using Specific Identification
Less:
Equals: