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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.
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 Sold at Units Acquired at Cost Retail 200 units@ $2 = $ 400 126 units @ $8 318 units@ $3 = $ 954 220 units @ $8 250 units@ $4 = $1,000 182 units @ $8 84 units@ $5 = $ 420 852 units $2,774 528 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C 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 Cost per Inventory Balance Inventory # of units unit Balance 200 @ $ 2.00 = $ 400.00 January 1 January 3 February 14
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