Refer to the information in Exercise 6-11 and assume the periodic inventory system is used. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. (c) Compute the gross profit for each method.

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.

Transcribed Image Text:

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