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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 January 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 | ||||||
---|---|---|---|---|---|---|---|---|---|
January 1 | Beginning inventory | 40 | units | @ $2 | = | $ 80 | |||
January 3 | Sales | 30 | units | @ $8 | |||||
February 14 | Purchase | 70 | units | @ $3 | = | $ 210 | |||
February 15 | Sales | 60 | units | @ $8 | |||||
June 30 | Purchase | 90 | units | @ $4 | = | $ 360 | |||
November 6 | Sales | 86 | units | @ $8 | |||||
November 19 | Purchase | 20 | units | @ $5 | = | $ 100 | |||
Totals | 220 | units | $ 750 | 176 | units |
The company uses a periodic inventory system.
- Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
- Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
- Compute the gross profit for each method.
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