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Jan. 1 Beginning inventory Jan. 10 Sales 225 units @ $11.00 = $ 2,475 150 units @ $41.00 Mar.14 Purchase Mar. 15 Sales 340 units @ $16.00 5,440 %3D 300 units @ $41.00 July30 Purchase Oct. 5 Sales 425 units @ $21.00 8,925 %3D Oct. 26 Purchase 395 units @ $41.00 125 units @ $26.00 3,250 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, 80 units from the July 30 purchase, and all 125 units from the October 26 purchase. Using the specific identification method, calculate th 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 Jan. 1 Beginning Inventory $ 11.00 225 $ 11.00 225 $ 2,475 225 $ 11.00 24 2,475 Mar. 14 Purchase 340 $ 16.00 340 $ 16.00 5,440 45 $ 16.00 720 July 30 Purchase 425 $ 21.00 280 $ 21.00 5,880 145 $ 21.00 3,045 Oct. 26 Purchase 125 $ 26.00 125 $ 26.00 3,250 125 $ 26.00 3,250 1,115 970 $ 17,045 540 24 9,490 b) Gross Margin using Specific Identification Sales Less: Cost of goods sold Equals: Gross margin

Jan. 1 Beginning inventory Jan. 10 Sales 225 units @ $11.00 = $ 2,475 150 units @ $41.00 Mar.14 Purchase Mar. 15 Sales 340 units @ $16.00 5,440 %3D 300 units @ $41.00 July30 Purchase Oct. 5 Sales 425 units @ $21.00 8,925 %3D Oct. 26 Purchase 395 units @ $41.00 125 units @ $26.00 3,250 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, 80 units from the July 30 purchase, and all 125 units from the October 26 purchase. Using the specific identification method, calculate th 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 Jan. 1 Beginning Inventory $ 11.00 225 $ 11.00 225 $ 2,475 225 $ 11.00 24 2,475 Mar. 14 Purchase 340 $ 16.00 340 $ 16.00 5,440 45 $ 16.00 720 July 30 Purchase 425 $ 21.00 280 $ 21.00 5,880 145 $ 21.00 3,045 Oct. 26 Purchase 125 $ 26.00 125 $ 26.00 3,250 125 $ 26.00 3,250 1,115 970 $ 17,045 540 24 9,490 b) Gross Margin using Specific Identification Sales Less: Cost of goods sold Equals: Gross margin

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jan. 1 Beginning inventory 225 units @ $11.00 $ 2,475 %3D Jan. 10 Sales Mar. 14 Purchase 150 units@ $41.00 340 units @ $16.00 = Mar. 15 Sales 5,440 July30 Purchase 300 units@ $41.00 425 units @ $21.00 8,925 %3D Oct. 5 Sales Oct. 26 Purchase 395 units @ $41.00 125 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, 80 units from the July 30 purchase, and all 125 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 Ending Inventory Unit Cost Units Ending Inventory Date Activity Units Unit Units Unit Cost COGS Cost Sold Cost Jan. 1 Beginning Inventory 225 $ 11.00 225 $ 11.00 $ 2,475 225 $ 11.00 $ 2,475 Mar. 14 Purchase 340 $ 16.00 340 $ 16.00 5,440 45 $ 16.00 720 July 30 Purchase 425 $ 21.00 280 $ 21.00 5,880 145 $21.00 3,045 Oct. 26 Purchase 125 $ 26.00 125 $ 26.00 3,250 125 $ 26.00 3,250 1,115 970 $17,045 540 9,490 b) Gross Margin using Specific Identification Sales Less: Cost of goods sold Equals: Gross margin %24
Transcribed Image Text:Jan. 1 Beginning inventory 225 units @ $11.00 $ 2,475 %3D Jan. 10 Sales Mar. 14 Purchase 150 units@ $41.00 340 units @ $16.00 = Mar. 15 Sales 5,440 July30 Purchase 300 units@ $41.00 425 units @ $21.00 8,925 %3D Oct. 5 Sales Oct. 26 Purchase 395 units @ $41.00 125 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, 80 units from the July 30 purchase, and all 125 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 Ending Inventory Unit Cost Units Ending Inventory Date Activity Units Unit Units Unit Cost COGS Cost Sold Cost Jan. 1 Beginning Inventory 225 $ 11.00 225 $ 11.00 $ 2,475 225 $ 11.00 $ 2,475 Mar. 14 Purchase 340 $ 16.00 340 $ 16.00 5,440 45 $ 16.00 720 July 30 Purchase 425 $ 21.00 280 $ 21.00 5,880 145 $21.00 3,045 Oct. 26 Purchase 125 $ 26.00 125 $ 26.00 3,250 125 $ 26.00 3,250 1,115 970 $17,045 540 9,490 b) Gross Margin using Specific Identification Sales Less: Cost of goods sold Equals: Gross margin %24
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