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Tree Seedlings has the following current-year purchases and sales for its only product. Date January 1 Activities Beginning inventory 200 units Units Acquired at
Tree Seedlings has the following current-year purchases and sales for its only product. Date January 1 Activities Beginning inventory 200 units Units Acquired at Cost @ $2 Units Sold at Retail $400 January 3 Sales 126 units @ $ 8 February 14 February 15 Purchase Sales 318 units @ $3 = $ 954 220 units @ $ 8 June 30 Purchase 250 units @ $4 = $ 1,000 November 6 November 19 Sales Purchase 182 units @ $ 8 Totals 84 units 852 units @ $5 = $ 420 $ 528 units 2,774 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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