Question

Requlled information [The following information applies to the questions displayed below) Hemming Co. reported the following current-year purchases and sales for its only product Units Sold at Retall Units Acquired at Cost 260 units $12.4e - $ 3,224 215 units @ $42.48 420 units $17.40 = 7,388 Date Activities Jan. 1 Beginning inventory Jan, 10 Sales Mar. 14 Purchase Mar. 15 Sales July Be Purchase Oct. 5 Sales Oct. 26 Purchase Totals 380 units @ $42.40 460 units $22.40 = 10,304 425 units @ $42.48 $27.40 160 units 1.300 units 4 ,384 525, 22e 1.eze units Required: Hemming uses a perpetual Inventory system. Assume that ending Inventory is made up of 45 units from the March 14 purchase. 75 units from the July 30 purchase, and all 160 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 Ending Ending Inventory Unit Cost Inventory Cost Activity Units Cost Sold Unit Cost COGS 200 4201 Jan. 1 Mar 14 July 30 Oct 26 Beginning inventory Purchase Purchase Purchase TIL b) Gross Margin using Specific Identification

Answer 1

Requirement: A Specific Identification Method Ending Inventory Ending Cost of goods Available for sale Cost of Goods sold Cost of No of Cost per Cost per unit Activity Units Unit cost goods No of units Inventor units unit sold у Beginning inventory Purchase Jan-01 12,40 12.40 260 12.40 260 3224 0 0 Mar-14 420 17.40 375 17,40 6525 45 17.40 783 Jul-30 460 Purchase 22.40 385 22,40 8624 75 22,40 1680 Purchase Oct-26 27.40 160 0 27.40 0 160 27.40 4384 Total 18373 1300 1020 280 6847 Requirement: B Sales 43248 Less: Cost of goods sold Gross profit 18373 24875