Tree Seedlings has the following current-year purchases and sales for its only product. Date Activities Jan. 1 Beginning inventory Jan. 3 Sales Feb. 14 Purchase Feb. 15 Sales June 30 Purchase Nov. 6 Sales Nov. 19 Purchase Totals Units Acquired at Cost Units Sold at Retail 220 units @ $2 = $ 440 134 units @ $8 354 units @ $3 $1,062 240 units @ $8 270 units @ $4 $1,080 204 units @ $8 92 units @ $5 = $ 460 936 units $3,042 578 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 # 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 220 @ $ 2.00 = $ 440.00 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 Cost of Goods Sold # of Cost per # of units Cost per Cost of Goods units unit sold unit Sold Inventory Balance Cost per # of units Inventory unit Balance 220 @ $ 2.00 = $ 440.00 Date January 1 January 3 February 14 February 15 June 30 November 6 November 19 Totals 0.00 Compute the gross margin for each method. FIFO: LIFO: Sales revenue Cost of goods sold Gross margin $ 0 $ 0