Cost Sold Units Cost Jan. 1 Beginning Inventory 200 $ 10.00 $ 10.00 $ $ 10.00 $ Mar. 14 Purchase 350 $ 15.00 $ 15.00 $ 15.00 July 30 Purchase 450 $ 20.00 $ 20.00 $ 20.00 Oct. 26 Purchase 100 $ 25.00 $ 25.00 $ 25.00 1,100 $ $ b) Gross Margin using Specific Identification Less: Equals:

Cost Sold Units Cost Jan. 1 Beginning Inventory 200 $ 10.00 $ 10.00 $ $ 10.00 $ Mar. 14 Purchase 350 $ 15.00 $ 15.00 $ 15.00 July 30 Purchase 450 $ 20.00 $ 20.00 $ 20.00 Oct. 26 Purchase 100 $ 25.00 $ 25.00 $ 25.00 1,100 $ $ b) Gross Margin using Specific Identification Less: Equals:

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Description: Required informationSkip to question [The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. DateActivitiesUnits Acquired at CostUnits Sold at

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter5: Operating Activities: Purchases And Cash Payments

Section: Chapter Questions

Problem 1.6C

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[The following information applies to the questions displayed below.]

Hemming Co. reported the following current-year purchases and sales for its only product.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Jan.

Beginning inventory

200

units

@ $10

2,000

Jan.

Sales

150

units

@ $40

Mar.

Purchase

350

units

@ $15

5,250

Mar.

Sales

300

units

@ $40

July

Purchase

450

units

@ $20

9,000

Oct.

Sales

430

units

@ $40

Oct.

Purchase

100

units

@ $25

2,500

Totals

1,100

units

18,750

880

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 100 units from the October 26 purchase. Using the specific identification method, calculate the following.

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