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