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Required information [The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. Activities Units Acquired at Cost 265 units @$12.60 Units Sold at Retail Date $ 3,339 Jan. 1 Beginning inventory $42.60 Jan. 10 Sales 225 units 430 units @$17.60 Mar.14 Purchase 7,568 370 units $42.60 Mar. 15 Sales 465 units @$22.60 July 30 Purchase Oct. 5 Sales 10,509 440 units @$42.60 165 units @$27.60 Oct. 26 Purchase 4,554 $25,970 1,035 units Totals 1,325 units Required: Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 55 units from the March 14 purcha units from the July 30 purchase, and all 165 units from the October 26 purchase. Using the specific identification method, cal following a) Cost of Goods Sold using Specific Identification Available for Sale Cost of Goods Sold Ending Inventory Ending Inventory Unit Cost Units Ending Inventory Cost Unit Units Sold Date Activity Units Unit Cost COGS Cost Beginning Inventory 12.60 $ $ 17.60 12.60 Jan. 1 3,339 12.60 265 265 0 0 430 17.60 Mar. 14 Purchase 17.60 225 3,960 0 22.60 $ 22.60 $ 22.60 July 30 Purchase 465 0 $ 27.60 165 27.60 $ 27.60 Oct. 26 Purchase 0 1,325 490 7,299 C 0 b) Gross Margin using Specific Identification Ending inventory Less: Equals

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