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[The following information applies to the questions displayed below.]
Hemming Company reported the following current-year purchases and sales for its only product.
Date
January 1
January 10
March 14
March 15
July 30
October 5
October 26
Activities
Beginning inventory
Sales
Purchase
Sales
Purchase
Sales
Units Acquired at Cost
@ $11.80 =
@$16.80 =
@ $21.80 =
@ $26.80
Purchase
Totals
a) Cost of Goods Sold using Specific Identification
Available for Sale
Date
January 1
March 14
July 30
October 26
Activity
Beginning Inventory
Purchase
Less:
Equals:
Purchase
Purchase
b) Gross Margin using Specific Identification
Ending inventory consists of 40 units from the March 14 purchase, 70 units from the July 30 purchase, and all 145 units from the
October 26 purchase. Using the specific identification method, calculate the following.
# of units
245 units
245
390
445
145
1,225
390 units
445 units
145 units
1,225 units
Cost Per # of units
Unit
sold
$ 2,891
6,552
9,701
3,886
$ 23,030
Cost of Goods Sold
Cost Per
Unit
$
$
$
$
Units Sold at Retail
190 units
350 units
430 units
Cost of
Goods Sold
0.00 $
0.00
0.00
0.00
$
970 units
0
0
0
0
0
Ending
Inventory
Units
@$41.80
@$41.80
@$41.80
0
Ending Inventory
Cost Per Unit
$
$
$
$
Ending Inventory
Cost
0.00 $
0.00
0.00
0.00
$
0
0
0
0
0
Fig: 1
