Tree Seedlings has the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail 110 units@ $2 = $ 220 Jan. 1 Beginning inventory Jan. 3 Sales 90 units @ $8 Feb. 14 Purchase 156 units @ $3 = $ 468 Feb. 15 Sales 130 units@ $8 June 30 Purchase 160 units@ $4 = $ 640 Nov. 6 Sales 128 units @ $8 Nov.19 Purchase 48 units@ $5 = $ 240 $1,568 Totals 474 units 348 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 Cost of Goods Sold Date # of units # of units sold Cost per Cost of Goods unit Sold # of units January 1 110 January 3 February 14 February 15 June 30 November 6 November 19 Cost per unit Inventory Balance Cost per unit @ $ 2.00 = Inventory Balance $220.00 Required A Required B Required C Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. Perpetual LIFO: Goods Purchased Cost of Goods Sold # of Date # of units sold Cost per Cost of Goods unit Sold # of units units January 1 January 3 February 14 February 15 June 30 November 6 November 19 Cost per unit Inventory Balance Cost per unit $ 2.00 = 110 @ Inventory Balance $220.00 Required A Required B Required C Compute the gross margin for each method. FIFO: Sales revenue Cost of goods sold Gross margin $ LIFO: 0 $ 0