Exercise 5-9 (Algo) Specific identification LO P1

! Required information Use the following information for the Exercises 8-10 below. (Algo) (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 Retail Units Acquired at Cost 220 units @ $10.80 = $ 2,376 190 units @ $40.80 330 units @ $15.80 = 5,214 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 280 units @ $40.80 420 units @ $20.80 = 8,736 390 units @ $40.80 = 120 units @ $25.80 1,090 units 3,096 $19,422 860 units Exercise 5-9 (Algo) Specific identification LO P1 Hemming uses a periodic inventory system. Ending inventory consists 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. a) Cost of Goods Sold using Specific Identification Available for Sale Cost of Goods Sold Ending Inventory Date Activity # of units Cost Per Unit # of units sold Cost Per Unit COGS Ending Inventory Units Cost Per Unit Ending Inventory Cost Jan. 1 Beginning Inventory 220 $ 10.80 220 $ 10.80 $ 2,376 $ 10.80 $ 0 Mar. 14 Purchase 330 $ 15.80 330 X $ 15.80 5,214 190 X $ 15.80 3,002 OOOO July 30 Purchase 420 $ 20.80 420 X $ 20.80 8,736 280 X $ 20.80 5,824 Oct. 26 Purchase 120 $ 25.80 120 $ 25.80 3,096 390 X $ 25.80 10,062 1,090 1,090 $ 19,422 860 $ 18,888 b) Gross Margin using Specific Identification Sales $ 44,472 X Less: Cost of goods sold 19,422 X Equals: Gross profit $ 25,050 X *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted