Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 Activities Beginning inventory Sales Units Acquired at Cost @$12.00 @$17.00 January 10 March 14 March 15 July 30 October 5 October 26 Purchase Sales Purchase Sales @ $22.00 Purchase @ $27.00 Totals 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 250 400 250 units 450 150 1,250 400 units 450 units 150 units 1,250 units = Cost Per # of units Unit sold = = Ending inventory consists of 45 units from the March 14 purchase, 75 units from the July 30 purchase, and all 150 units from the October 26 purchase. Using the specific identification method, calculate the following. $ 3,000 6,800 9,900 4,050 $ 23,750 Cost of Goods Sold Cost Per Unit Units Sold at Retail COGS 200 units 360 units 420 units 980 units @ $42.00 @ $42.00 @ $42.00 Ending Inventory Units Ending Inventory Cost Per Unit Ending Inventory Cost
Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 Activities Beginning inventory Sales Units Acquired at Cost @$12.00 @$17.00 January 10 March 14 March 15 July 30 October 5 October 26 Purchase Sales Purchase Sales @ $22.00 Purchase @ $27.00 Totals 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 250 400 250 units 450 150 1,250 400 units 450 units 150 units 1,250 units = Cost Per # of units Unit sold = = Ending inventory consists of 45 units from the March 14 purchase, 75 units from the July 30 purchase, and all 150 units from the October 26 purchase. Using the specific identification method, calculate the following. $ 3,000 6,800 9,900 4,050 $ 23,750 Cost of Goods Sold Cost Per Unit Units Sold at Retail COGS 200 units 360 units 420 units 980 units @ $42.00 @ $42.00 @ $42.00 Ending Inventory Units Ending Inventory Cost Per Unit Ending Inventory Cost
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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