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Tree Seedlings has the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost 50 units @ $2

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Tree Seedlings has the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost 50 units @ $2 = $100 78 units @ $3 = $234 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 34 units @ $8 70 units @ $8 100 units @ $4 = $400 92 units @ $8 24 units @ $5 = $120 252 units $854 196 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. 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 50 @ $ 2.00 = $ 100.00 January 1 January 3 February 14 34 @ $ 8.00 $ 272.00 78 @ $ 3.00 16 @ $ 2.00 = $ 32.00 16 @ $ 2.00 = $ 32.00 78 @ $ 3.00 = 234.00 $ 266.00 16 February 15 $ 2.00 $ 3.00 0 @ 6 @ $ 32.00 186.00 $ 218.00 $ 2.00 = $ 3.00 = 62 @ = $ 18.00 $ 18.00 June 30 100 @ $ 4.00 0 @ 6 @ 100 @ $ 2.00 $ 3.00 = $ 4.00 - 18.00 400.00 $ 418.00 E November 6 0 @ $ 2.00 $ 0.00 18.00 11 6 @ 86 @ $ 3.00 $ 4.00 0 @ 0 @ 14 @ $ 2.00 $ 3.00 $ 4.00 = 56.00 " 344.00 $362.00 $ 56.00 November 19 24 @ $ 120.00 o @ $ 2.00 0 @ $ 3.00 14 @ $ 4.00 - $ 24 @ 120.00 56.00 2,880.00 Totals $2,936.00 $ 852.00 lloguld Required B > Perpetual LIFO: 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 50 @ $ 2.00 = $ 100.00 January 1 January 3 February 14 February 15 June 30 November 6 November 19 Totals $ 0.00 Complete this question by entering your answers in the tabs below. Required A Required B Required Compute the gross margin for each method. FIFO: LIFO: Sales revenue Cost of goods sold Gross margin $ 0 $ 0

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