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ree Seedlings has the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1

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

Date Activities Units Acquired at Cost Units Sold at Retail
Jan. 1 Beginning inventory 130 units @ $2 = $ 260
Jan. 3 Sales 98 units @ $8
Feb. 14 Purchase 192 units @ $3 = $ 576
Feb. 15 Sales 150 units @ $8
June 30 Purchase 180 units @ $4 = $ 720
Nov. 6 Sales 140 units @ $8
Nov. 19 Purchase 56 units @ $5 = $ 280
Totals 558 units $ 1,836 388 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 Inventory Balance
Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance
January 1 130 @ $2.00 = $260.00
January 3
February 14
February 15
June 30
November 6
November 19
Totals $0.00

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