50.1K

Verified Solution

Link Copied!

Hemming Co. reported the following current-year purchases and sales for its only product. Units Acquired at Cost 220 units @ $10.80 = $ 2,376 Date Activities Jan. 1 Mar. 14 July 30 Oct. 26 Date Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar.15 Sales July 30 Oct. 5 Sales. Oct.26 Purchase. Totals Purchase a) Cost of Goods Sold using Specific Identification Available for Sale Less: Equals: Activity Beginning Inventory Purchase Purchase Purchase Units 220 330 420 120 1,090 b) Gross Margin using Specific Identification Sales Cost of goods sold Gross margin 330 units @ $15.80 420 units @ $20.80 120 units @ $25.80 1,090 units. Required: Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 40 units from the March 14 purchase, 70 July 30 purchase, and all 120 units from the October 26 purchase. Using the specific identification method, calculate the units from following. Unit Cost $ 10.80 $ 15.80 $ 20.80 $ 25.80 Units Sold 220 Cost of Goods Sold 220 5,214 3,096 $19,422 8,736 Unit Cost $ 10.80 $15.80 20.80 $ 25.80 $ Units Sold at Retail COGS $ $ 190 units @ $40.80 280 units @ $40.80 390 units @ $40.80 860 units 2,376 0 0 0 2,376 Ending Inventory Ending Inventory Unit Cost Units 0 $ 10.80 $ 15.80 $ 20.80 $25.80 0 Ending Inventory Cost $ $ 0 0 0 0 0

Hemming Co, reported the following current-year purchases and sales for its only product. Required: Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 40 units from the March 14 purchase, 70 units from the July 30 purchase, and all 120 units from the October 26 purchase. Using the specific identification method, calculate the following

Answer & Explanation Solved by verified expert

See Answer