Required information Use the following information for the Exercises 8-10 below. (Algo) [The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Units Acquired at Cost @ $11.40 - @$16.40 = @ $21.40 - @$26.40 235 units 360 units 435 units 135 units 1,165 units = $ 2,679 5,904 9,309 3,564 $ 21,456 Units Sold at Retail 170 units 290 units 410 units 870 units @ $41.40 @ $41.40 @ $41.40

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Required information
Use the following information for the Exercises 8-10 below. (Algo)
[The following information applies to the questions displayed below.]
Hemming Company reported the following current-year purchases and sales for its only product.
Activities
Beginning inventory
Sales
Purchase
Sales
Purchase
Sales
Purchase
Totals
Date
January 1
January 10
March 14
March 15
July 30
October 5
October 26
Units Acquired at Cost
@ $11.40
@$16.40
@ $21.40 =
235 units
360 units
435 units
135 units
1,165 units
@ $26.40
=
$ 2,679
5,904
9,309
3,564
$ 21,456
Units Sold at Retail
170 units
290 units
410 units
870 units
@ $41.40
@ $41.40
@ $41.40
Transcribed Image Text:! Required information Use the following information for the Exercises 8-10 below. (Algo) [The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Units Acquired at Cost @ $11.40 @$16.40 @ $21.40 = 235 units 360 units 435 units 135 units 1,165 units @ $26.40 = $ 2,679 5,904 9,309 3,564 $ 21,456 Units Sold at Retail 170 units 290 units 410 units 870 units @ $41.40 @ $41.40 @ $41.40
Ending inventory consists of 65 units from the March 14 purchase, 95 units from the July 30 purchase, and all 135 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
Date
January 1
March 14
July 30
October 26
Activity
Beginning Inventory
Purchase
Purchase
Purchase
b) Gross Margin using Specific Identification
Less:
Equals:
# of units
235
360
435
135
1,165
Cost Per # of units
Unit
sold
$11.40
$ 16.40
$21.40
$26.40
Cost of Goods Sold
Cost Per
Unit
$
$
340 $
$
340
11.40 $
16.40
21.40
26.40
$
COGS
0
0
7,276
0
7,276
Ending
Inventory
Units
Ending Inventory
Cost Per Unit Ending Inventory
Cost
$
$
$
135 $
135
11.40 $
16.40
21.40
26.40
$
0
0
0
3,564
3,564
Transcribed Image Text:Ending inventory consists of 65 units from the March 14 purchase, 95 units from the July 30 purchase, and all 135 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 Date January 1 March 14 July 30 October 26 Activity Beginning Inventory Purchase Purchase Purchase b) Gross Margin using Specific Identification Less: Equals: # of units 235 360 435 135 1,165 Cost Per # of units Unit sold $11.40 $ 16.40 $21.40 $26.40 Cost of Goods Sold Cost Per Unit $ $ 340 $ $ 340 11.40 $ 16.40 21.40 26.40 $ COGS 0 0 7,276 0 7,276 Ending Inventory Units Ending Inventory Cost Per Unit Ending Inventory Cost $ $ $ 135 $ 135 11.40 $ 16.40 21.40 26.40 $ 0 0 0 3,564 3,564
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