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 120 units @ $2 = $ 240 January 3 Sales 94 units @ $ 8 February 14 Purchase 174 units @ $3 = $ 522 February 15 Sales 140 units @ $ 8 June 30 Purchase 170 units @ $4 = $ 680 November 6 Sales 134 units @ $ 8 November 19 Purchase 52 units @ $5 = $ 260 Totals 516 units $ 1,702 368 units Required: The company uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. Compute the gross profit for each method. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: Date Goods Purchased Cost of Goods Sold Inventory Balance # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 January 3 February 14 Total February 14 February 15 Total February 15 June 30 Total June 30 November 6 Total November 6 November 19 Totals $0.00 Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. Perpetual LIFO: Date Goods Purchased Cost of Goods Sold Inventory Balance # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 January 3 February 14 Total February 14 February 15 Total February 15 June 30 Total June 30 November 6 Total November 6 November 19 Totals $0.00 Compute the gross profit for each method. FIFO LIFO Sales revenue Cost of goods sold Gross profit $0 $0
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 120 units @ $2 = $ 240 January 3 Sales 94 units @ $ 8 February 14 Purchase 174 units @ $3 = $ 522 February 15 Sales 140 units @ $ 8 June 30 Purchase 170 units @ $4 = $ 680 November 6 Sales 134 units @ $ 8 November 19 Purchase 52 units @ $5 = $ 260 Totals 516 units $ 1,702 368 units Required: The company uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. Compute the gross profit for each method. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: Date Goods Purchased Cost of Goods Sold Inventory Balance # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 January 3 February 14 Total February 14 February 15 Total February 15 June 30 Total June 30 November 6 Total November 6 November 19 Totals $0.00 Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. Perpetual LIFO: Date Goods Purchased Cost of Goods Sold Inventory Balance # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 January 3 February 14 Total February 14 February 15 Total February 15 June 30 Total June 30 November 6 Total November 6 November 19 Totals $0.00 Compute the gross profit for each method. FIFO LIFO Sales revenue Cost of goods sold Gross profit $0 $0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 | 120 | units | @ $2 | = | $ 240 | |||
| January 3 | Sales | 94 | units | @ $ 8 | |||||
| February 14 | Purchase | 174 | units | @ $3 | = | $ 522 | |||
| February 15 | Sales | 140 | units | @ $ 8 | |||||
| June 30 | Purchase | 170 | units | @ $4 | = | $ 680 | |||
| November 6 | Sales | 134 | units | @ $ 8 | |||||
| November 19 | Purchase | 52 | units | @ $5 | = | $ 260 | |||
| Totals | 516 | units | $ 1,702 | 368 | units |
Required:
The company uses a perpetual inventory system.
- Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
- Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
- Compute the gross profit for each method.
Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
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Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
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Compute the gross profit for each method.
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