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Tree 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
Tree 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 | 220 | units | @ $2 | = | $ | 440 | ||||||||
Jan. | 3 | Sales | 134 | units | @ $8 | |||||||||||
Feb. | 14 | Purchase | 354 | units | @ $3 | = | $ | 1,062 | ||||||||
Feb. | 15 | Sales | 240 | units | @ $8 | |||||||||||
June | 30 | Purchase | 270 | units | @ $4 | = | $ | 1,080 | ||||||||
Nov. | 6 | Sales | 204 | units | @ $8 | |||||||||||
Nov. | 19 | Purchase | 92 | units | @ $5 | = | $ | 460 | ||||||||
Totals | 936 | units | $ | 3,042 | 578 | units |
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The company uses a periodic 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 profit for each method.
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