Tree Seedlings has the following current-year purchases and sales for its only product.

Required

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

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Units Acquired at Cost 40 units @ $2 = $ 80 Units Sold at Retail Date Activities Beginning inventory.. Jan. 1 .... 30 units @ $8 Jan. Sales..... 70 units @ $3 = $210 Feb. 14 Purchase. 60 units @ $8 Feb. 15 Sales.... Purchase.. Sales.. Purchase. Totals 90 units @ $4 = $360 June 30 Nov. 6 Nov. 19 86 units @ $8 20 units @ $5 = $100 220 units 176 units $750