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Units Sold at Retail Units Acquired at Cost 225 units @ $11.00 = $ 2,475 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales 150 units @ $41.00 Mar.14 Purchase 340 units @ $16.00 5,440 %3D Mar.15 Sales July 30 Purchase Oct. 5 Sales 300 units e $41.00 425 units @ $21.00 8,925 %3D 395 units @ $41.00 Oct. 26 Purchase 125 units @ $26.00 3,250 %3D Totals 1,115 units $20,090 845 units Exercise 5-8 Specific identification LO P1 Required: Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 65 units from the March 14 purcha units from the July 30 purchase, and all 125 units from the October 26 purchase. Using the specific identification method, ca following. a) Cost of Goods Sold using Specific Identification Available for Sale Cost of Goods Sold Ending Inventory Units Sold Ending Inventory Unit Cost Units Ending Inventory Cost Unit Date Activity Units Unit Cost COGS Cost Jan. 1 Beginning Inventory 225 $ 11.00 $ 11.00 24 225 24 11.00 24 2,475 Mar. 14 Purchase 340 $ 16.00 295 $ 16.00 4,720 45 $ 16.00 720 July 30 Purchase 425 $ 21.00 425 $ 21.00 8,925 $ 21.00 Oct. 26 Purchase 125 $ 26.00 125 $ 26.00 3,250 $26.00 1,115 845 $ 16,895 270 %24 3,195 b) Gross Margin using Specific Identification Sales $34,645 Less: Cost of goods sold 13,645 Equals: Gross margin $21,000

Units Sold at Retail Units Acquired at Cost 225 units @ $11.00 = $ 2,475 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales 150 units @ $41.00 Mar.14 Purchase 340 units @ $16.00 5,440 %3D Mar.15 Sales July 30 Purchase Oct. 5 Sales 300 units e $41.00 425 units @ $21.00 8,925 %3D 395 units @ $41.00 Oct. 26 Purchase 125 units @ $26.00 3,250 %3D Totals 1,115 units $20,090 845 units Exercise 5-8 Specific identification LO P1 Required: Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 65 units from the March 14 purcha units from the July 30 purchase, and all 125 units from the October 26 purchase. Using the specific identification method, ca following. a) Cost of Goods Sold using Specific Identification Available for Sale Cost of Goods Sold Ending Inventory Units Sold Ending Inventory Unit Cost Units Ending Inventory Cost Unit Date Activity Units Unit Cost COGS Cost Jan. 1 Beginning Inventory 225 $ 11.00 $ 11.00 24 225 24 11.00 24 2,475 Mar. 14 Purchase 340 $ 16.00 295 $ 16.00 4,720 45 $ 16.00 720 July 30 Purchase 425 $ 21.00 425 $ 21.00 8,925 $ 21.00 Oct. 26 Purchase 125 $ 26.00 125 $ 26.00 3,250 $26.00 1,115 845 $ 16,895 270 %24 3,195 b) Gross Margin using Specific Identification Sales $34,645 Less: Cost of goods sold 13,645 Equals: Gross margin $21,000

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Inventories
Section: Chapter Questions
Problem 6.2BE: Perpetual inventory using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as...
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Units Acquired at Cost 225 units @ $11.00 Date Activities Units Sold at Retail Jan. 1 Beginning inventory = $ 2,475 Jan. 10 Sales 150 units @ $41.00 Mar.14 Purchase 340 units @ $16.00 5,440 Mar.15 Sales 300 units @ $41.00 July30 Purchase 425 units @ $21.00 8,925 %3D Oct. 5 Sales 395 units @ $41.00 Oct.26 Purchase 125 units @ $26.00 3,250 %3D Totals 1,115 units $20,090 845 units Exercise 5-8 Specific identification LO P1 Required: Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 65 units from the March 14 purchase units from the July 30 purchase, and all 125 units from the October 26 purchase. Using the specific identification method, calcu 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 Date Activity Units Unit Cost COGS Cost Sold Jan. 1 Beginning Inventory 225 $ 11.00 $11.00 225 %24 11.00 2$ 2,475 Mar. 14 Purchase 340 $ 16.00 295 $ 16.00 4,720 45 $ 16.00 720 July 30 Purchase 425 $ 21.00 425 $21.00 8,925 $21.00 Oct. 26 Purchase 125 $ 26.00 125 $26.00 3,250 $ 26.00 1,115 845 $ 16,895 270 3,195 b) Gross Margin using Specific Identification Sales $34,645 Less: Cost of goods sold 13,645 Equals: Gross margin $21,000 %24 %24
Transcribed Image Text:Units Acquired at Cost 225 units @ $11.00 Date Activities Units Sold at Retail Jan. 1 Beginning inventory = $ 2,475 Jan. 10 Sales 150 units @ $41.00 Mar.14 Purchase 340 units @ $16.00 5,440 Mar.15 Sales 300 units @ $41.00 July30 Purchase 425 units @ $21.00 8,925 %3D Oct. 5 Sales 395 units @ $41.00 Oct.26 Purchase 125 units @ $26.00 3,250 %3D Totals 1,115 units $20,090 845 units Exercise 5-8 Specific identification LO P1 Required: Hemming uses a perpetual inventory system. Assume that ending inventory is made up of 65 units from the March 14 purchase units from the July 30 purchase, and all 125 units from the October 26 purchase. Using the specific identification method, calcu 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 Date Activity Units Unit Cost COGS Cost Sold Jan. 1 Beginning Inventory 225 $ 11.00 $11.00 225 %24 11.00 2$ 2,475 Mar. 14 Purchase 340 $ 16.00 295 $ 16.00 4,720 45 $ 16.00 720 July 30 Purchase 425 $ 21.00 425 $21.00 8,925 $21.00 Oct. 26 Purchase 125 $ 26.00 125 $26.00 3,250 $ 26.00 1,115 845 $ 16,895 270 3,195 b) Gross Margin using Specific Identification Sales $34,645 Less: Cost of goods sold 13,645 Equals: Gross margin $21,000 %24 %24
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