[The following information applies to the questions displayed below.] Tree Seedlings has the following current-year purchases and sales for its only product. Units Acquired at Cost 60 units 86 units. a Date January 1 January 3 February 14 February 15 June 30 November 6. November 19 Required: The company uses a perpetual inventory system. Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Required A Required B 110 units. Complete this question by entering your answers in the tabs below. Required C 28 units 284 units < Prev. @ $2 = $ 120 @ $3 @$4 = @ $5 7 of 7 = - 258 Next $ 440 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. $ 140 $958 Units Sold at Retail 38 units 80 units 98 units 216 units @ $8 @ $8 @ $8
[The following information applies to the questions displayed below.] Tree Seedlings has the following current-year purchases and sales for its only product. Units Acquired at Cost 60 units 86 units. a Date January 1 January 3 February 14 February 15 June 30 November 6. November 19 Required: The company uses a perpetual inventory system. Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Required A Required B 110 units. Complete this question by entering your answers in the tabs below. Required C 28 units 284 units < Prev. @ $2 = $ 120 @ $3 @$4 = @ $5 7 of 7 = - 258 Next $ 440 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. $ 140 $958 Units Sold at Retail 38 units 80 units 98 units 216 units @ $8 @ $8 @ $8
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 1.6C
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![**Required Information**
[The following information applies to the questions displayed below:]
Tree Seedlings has the following current-year purchases and sales for its only product.
| Date | Activities | Units Acquired at Cost | Units Sold at Retail |
|--------------|---------------------|-------------------------------|-------------------------|
| January 1 | Beginning inventory | 60 units @ $2 = $120 | |
| January 3 | Sales | | 38 units @ $8 |
| February 14 | Purchase | 86 units @ $3 = $258 | |
| February 15 | Sales | | 80 units @ $8 |
| June 30 | Purchase | 110 units @ $4 = $440 | |
| November 6 | Sales | | 98 units @ $8 |
| November 19 | Purchase | 28 units @ $5 = $140 | |
| **Totals** | | **284 units** = **$958** | **216 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 profit for each method.
Complete this question by entering your answers in the tabs below.
- Required A
- Required B
- Required C](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F046cbd11-f8d4-406f-a687-04d0715e7a8b%2Ff763adb4-8ba1-4897-bf60-9af8d63cd30f%2Fs9qkzoj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Required Information**
[The following information applies to the questions displayed below:]
Tree Seedlings has the following current-year purchases and sales for its only product.
| Date | Activities | Units Acquired at Cost | Units Sold at Retail |
|--------------|---------------------|-------------------------------|-------------------------|
| January 1 | Beginning inventory | 60 units @ $2 = $120 | |
| January 3 | Sales | | 38 units @ $8 |
| February 14 | Purchase | 86 units @ $3 = $258 | |
| February 15 | Sales | | 80 units @ $8 |
| June 30 | Purchase | 110 units @ $4 = $440 | |
| November 6 | Sales | | 98 units @ $8 |
| November 19 | Purchase | 28 units @ $5 = $140 | |
| **Totals** | | **284 units** = **$958** | **216 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 profit for each method.
Complete this question by entering your answers in the tabs below.
- Required A
- Required B
- Required C
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