Exercise 5-18 Sustainability and perpetual inventory costing LO P1 Tree Seedlings has the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost 240 units @ $2 = $ 480 142 units @ $8 390 units @ $3 Date Activities Jan. 1 Beginning inventory Jan. 3 Sales Feb.14 Purchase Feb. 15 Sales June 30 Purchase Nov. 6 Sales Nov.19 Purchase $1,170 260 units @ $8 290 units @ $4 = $1,160 236 units @ $8 100 units @ $5 1,020 units = $ 500 $3,310 Totals 638 units Required: The company uses a perpetual inventory system. a. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. b. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. c. Compute the gross margin for each method. Required A Required B Required Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: Goods Purchased # of units unit Cost per Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Date Inventory Balance Cost per Inventory # of units unit Balance 240 @ $ 2.00 = $ 480.00 January 1 January 3 142) @ $ 2.00 $ 284.00 98 @ $ 2.00 = $ 196.00 February 14 390 @ $ 3.00 98 @ $ 2.00 $ 196.00 390 @ $ 3.00 = 1,170.00 $1,366.00 February 15 98 @ $ 196.00 98 @ $ 2.00 $ 196.00 $ 2.00 $ 3.00 @ @ 0.00 196.00 $ $ 196.00 June 30 290 @ $ 4.00 @ $ 2.00 @ $ 4.00 November 6 November 19 100 @ $ 5.00 Perpetual LIFO: Goods Purchased # of Cost per units unit Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Date Inventory Balance Cost per # of units Inventory unit Balance 240 @ $ 2.00 $ 480.00 January 1 January 3 February 14 February 15 June 30 November 6 November 19 a. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. b. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. c. Compute the gross margin for each method. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the gross margin for each method. FIFO: LIFO: Sales revenue Cost of goods sold Gross margin 0 $ 0