Refer to sales and purchases data from Exercise 6-11 and record journal entries for Tree Seedlings’s sales and purchases transactions. Assume for this assignment that the company uses a perpetual inventory system and LIFO. All sales and purchases are made on account, and no discounts are offered.

Data From Exercise 6-11

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

Required

The company uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using 

(a) FIFO 

(b) LIFO. 

(c) Compute the gross profit for each method.

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