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I mainly need help filling out the sheets for perpetual FIFO and LIFO. I don't quite understand how to fill those out. Tree Seedlings has
I mainly need help filling out the sheets for perpetual FIFO and LIFO. I don't quite understand how to fill those out.
Tree Seedlings has the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail 40 units @ $2 = $ 80 30 units @ $8 70 units @ $3 = $210 Jan. 1 Beginning inventory Jan. 3 Sales Feb. 14 Purchase Feb. 15 Sales June 30 Purchase Nov. 6 Sales Nov.19 Purchase 60 units @ $8 90 units @ $4 = $360 86 units @ $8 20 units @ $5 = $100 220 units $750 Totals 176 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. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: Goods Purchased Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Date # of units Cost per unit Inventory Balance # of units Cost per Inventory unit Balance 40 @ $ 2.00 - $ 80.00 January 1 January 3 February 14 February 15 June 30 November 6 November 19 Totals $ 0.00 Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 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 # of units Cost per Inventory unit Balance 40 @ $ 2.00 = $ 80.00 January 1 January 3 February 14 February 15 June 30 November 6 November 19 Totals $ 0.00 Required A Required B Required C Compute the gross margin for each method. FIFO: LIFO: Sales revenue Less: Cost of goods sold Gross marginStep by Step Solution
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