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. Units Acquired at Cost 210 units $10.40 $ 2,184 Units Sold at Retail 170 units @ $40.40 310 units @ $15.40 = 4,774 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase Totals 270 units @ $40.40 410 units @ $20.40 = 8,364 380 units @ $40.40 $25.40 = 110 units 1,040 units 2,794 $18, 116 820 units Exercise 5-8 Specific identification LO P1 Required: 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 110 units from the October 26 purchase. Using the specific identification method, calculate the (a) the cost of goods sold and (b) the gross profit. Cost of Goods Gross Profit Sold Calculate the cost of goods sold. a) Cost of Goods sold using Specific Identification Available for Sale Cost of Goods Sold Date Activity Units Unit Cost Units Sold Unit Cost COGS Jan. 1 $ Beginning Inventory Purchase Purchase Purchase Mar. 14 July 30 Oct. 26 210 310 410 110 1,040 $ 10.40 $ 15.40 $ 20.40 $ 25.40 $ 10.40 $ 15.40 $ 20.40 $ 25.40 Ending Inventory Ending Ending Inventory Unit Cost Inventory Units Cost $ 10.40 $ $ 15.40 $ 20.40 $ 25.40 0 $ Cost of Goods Sold Gross Profit Calculate the gross profit. b) Gross Margin using Specific Identification Less: Equals