Assume that ending inventory is made up of 45 units

Assume that ending inventory is made up of 45 units from the March 14 purchase, 75 units from the July 30 purchase: and all the units of the October 26 purchase. Using the specific identification method, calculate (a) the cost of goods sold and (b) the gross profit.

Exercise 17-3

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

Hemming uses a periodic inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. Compute the gross profit for each method.