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.

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.

Name: ActivitiesBeginning inventoryTree Seedlings has the following current
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Description: ActivitiesBeginning inventoryTree Seedlings has the following current-year purchases and sales for its only product.DateJanuary 1Units Acquired at Cost Units Sold at Retail150 units@ $2 = $ 300January 31Sales106 units @ $ 8February 14February 15Purc

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 4PA: Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering...

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Activities
Beginning inventory
Tree Seedlings has the following current-year purchases and sales for its only product.
Date
January 1
Units Acquired at Cost Units Sold at Retail
150 units
@ $2 = $ 300
January 31
Sales
106 units @ $ 8
February 14
February 15
Purchase
Sales
228 units
June 30
November 6
November 19
Purchase
Sales
Purchase
Totals
200 units
64 units
642 units
@ $3 = $ 684
@ $4 = $ 800
170 units @ $ 8
152 units
@ $ 8
@ $5 = $320
$
428 units
2,104
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.
tes
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.
Periodic Inventory System
Ending
Inventory
Cost of
Goods Sold
FIFO
<Required A
Required B >

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Required information [The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Required: Hemming uses a perpetual inventory system. Units Acquired at Cost @ $11.80 245 units 390 units 445 units 145 units 1,225 units @ $16.80 = @ $21.80 = @ $26.80 = $ 2,891 6,552 9,701 3,886 $ 23,030 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 3. Compute the gross profit for FIFO method and LIFO method. Units Sold at Retail 190 units 350 units 430 units 970 units @ $41.80 @ $41.80 @ $41.80