Units Sold at Retail Units Acquired at Cost 300 units @ $14.00 = $ 4,200 250 units @ $44.00 520 units @ $19.00 = 9,880 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 460 units @ $44.00 500 units @ $24.00 = 12,000 480 units @ $44.00 200 units @ $29.00 1,520 units 5,800 $31,880 1,190 units Required: Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 50 units from the March 14 purchase, 80 units from the July 30 purchase, and all 200 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 Ending Inventory Unit Cost Inventory Units Cost Activity Unit Cost Units Units Sold Unit Cost COGS 300 $ 0.00 $ 0 $ 0.00 $ 0 Jan. 1 Mar. 14 July 30 Beginning Inventory Purchase $ 0.00 0 $ 0.00 0 520 500 Purchase 0 $ 0.00 0 $ $ 0.00 0.00 Oct. 26 Purchase 0 $ 0.00 0 200 1,520 0 $ 0 0 $ 0 b) Gross Margin using Specific Identification Less: Equals: Required information (a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. (b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. (c) Compute the gross margin for each method. a) Periodic FIFO Cost of Goods Sold Cost of Goods Available for Sale Cost of Goods # of units Cost per Available for unit Sale of units Cost per sold unit Cost of Goods Sold Ending Inventory # of units Cost Ending in ending inventory per unit Inventory Beginning inventory Purchases: March 14 July 30 October 26 Total 0 $ 0 0 $ 0 0 $ 0 b) Periodic LIFO Cost of Goods Sold Cost of Goods Available for Sale Cost per Cost of Goods # of units unit Available for Sale # of units Cost per sold unit Cost of Goods Sold Ending Inventory # of units Cost Ending in ending per unit Inventory inventory Beginning inventory Purchases: March 14 July 30 October 26 Total 0 $ 0 0 $ 0 0 $ 0 c) Gross Margin FIFO LIFO