Exercise 5-12 Perpetual: Journalizing transactions P1 Refer to sales and purchases data from Exercise 5-11 and record journal entries for Tree Seedlings's sales and purchases transactions. Assume for this assignment that the company uses a perpetual inventory system and LIFO. All sales and purchases are made on account, and no discounts are offered. Exercise 5-11 Perpetual: Inventory costing methods-FIFO and LIFO P1 Tree Seedlings has the following current year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Jan. 3 Beginning inventory Sales.. 40 units @ $2 = $ 80 30 units @ $8 Feb. 14 Purchase 70 units @ $3 = $210 Feb. 15 Sales.. 60 units @ $8 June 30 Nov. 6 Purchase Sales... 90 units @ $4 = $360 86 units @ $8 Nov. 19 Purchase Totals 20 units @$5-$100 220 units $750 176 units Required The company uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. (c) Compute the gross profit for each method.
Exercise 5-12 Perpetual: Journalizing transactions P1 Refer to sales and purchases data from Exercise 5-11 and record journal entries for Tree Seedlings's sales and purchases transactions. Assume for this assignment that the company uses a perpetual inventory system and LIFO. All sales and purchases are made on account, and no discounts are offered. Exercise 5-11 Perpetual: Inventory costing methods-FIFO and LIFO P1 Tree Seedlings has the following current year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Jan. 3 Beginning inventory Sales.. 40 units @ $2 = $ 80 30 units @ $8 Feb. 14 Purchase 70 units @ $3 = $210 Feb. 15 Sales.. 60 units @ $8 June 30 Nov. 6 Purchase Sales... 90 units @ $4 = $360 86 units @ $8 Nov. 19 Purchase Totals 20 units @$5-$100 220 units $750 176 units Required The company uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. (c) Compute the gross profit for each method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Exercise 5-12
Perpetual: Journalizing transactions P1
Refer to sales and purchases data from Exercise 5-11 and record journal entries for Tree Seedlings's sales and purchases transactions. Assume for
this assignment that the company uses a perpetual inventory system and LIFO. All sales and purchases are made on account, and no discounts are
offered.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F851d2752-072d-460a-a1d8-2cb438e193a7%2Fb20238fb-2bab-490d-91cc-d4c51883a110%2F65notwi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 5-12
Perpetual: Journalizing transactions P1
Refer to sales and purchases data from Exercise 5-11 and record journal entries for Tree Seedlings's sales and purchases transactions. Assume for
this assignment that the company uses a perpetual inventory system and LIFO. All sales and purchases are made on account, and no discounts are
offered.
![Exercise 5-11
Perpetual: Inventory costing methods-FIFO and LIFO
P1
Tree Seedlings has the following current year purchases and sales for its only product.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
Jan. 1
Jan. 3
Beginning inventory
Sales..
40 units @ $2 = $ 80
30 units @ $8
Feb. 14
Purchase
70 units @ $3 = $210
Feb. 15
Sales..
60 units @ $8
June 30
Nov. 6
Purchase
Sales...
90 units @ $4 = $360
86 units @ $8
Nov. 19
Purchase
Totals
20 units @$5-$100
220 units
$750
176 units
Required
The company uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b)
LIFO. (c) Compute the gross profit for each method.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F851d2752-072d-460a-a1d8-2cb438e193a7%2Fb20238fb-2bab-490d-91cc-d4c51883a110%2F1h4xh3i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 5-11
Perpetual: Inventory costing methods-FIFO and LIFO
P1
Tree Seedlings has the following current year purchases and sales for its only product.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
Jan. 1
Jan. 3
Beginning inventory
Sales..
40 units @ $2 = $ 80
30 units @ $8
Feb. 14
Purchase
70 units @ $3 = $210
Feb. 15
Sales..
60 units @ $8
June 30
Nov. 6
Purchase
Sales...
90 units @ $4 = $360
86 units @ $8
Nov. 19
Purchase
Totals
20 units @$5-$100
220 units
$750
176 units
Required
The company uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b)
LIFO. (c) Compute the gross profit for each method.
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