Tree Seedlings has the following current-year purchases and sales for its only product. Units Acquired at Cost 80 units 102 units Date January 1 January 3 February 14 February 15 June 30 November 6 November 19 Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals 130 units 36 units 348 units @$2 = $ 160 @$3 = @$4 @$5 = M $ 306 $ 520 $ 180 $ 1,166 Units Sold at Retail @ $8 @ $ 8 @ $ 8 46 units 100 units 110 units 256 units 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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[The following information applies to the questions displayed below.]
Tree Seedlings has the following current-year purchases and sales for its only product.
Date
January 1
January 3
February 14
February 15
June 30
November 6
November 19
Activities
Beginning inventory
Sales
Purchase
Sales
Purchase
Sales
Purchase
Totals
Units Acquired at Cost
80 units
102 units
130 units
36 units
348 units
@ $2 = $ 160
@$3 =
= $ 306
@ $4=
@ $5 =
$ 520
$ 180
$
1,166
Units Sold at Retail
46 units
100 units
110 units
256 units
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.
@ $8
@ $8
@ $8
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 January 1 January 3 February 14 February 15 June 30 November 6 November 19 Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Units Acquired at Cost 80 units 102 units 130 units 36 units 348 units @ $2 = $ 160 @$3 = = $ 306 @ $4= @ $5 = $ 520 $ 180 $ 1,166 Units Sold at Retail 46 units 100 units 110 units 256 units 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. @ $8 @ $8 @ $8
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