Chapter 6, Problem 18E

Exercise 6-1E Perpetual inventory costing 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	Beginning inventory.........	40 units @$2 = $ 80
Jan.	3	Sales.....................		30 units 0 $8
Feb.	14	Purchase..................	70 units i*13 = $210
Feb.	15	Sales.....................		60 units 0 $8
June	30	Purchase..................	90 units ift $4 = $360
Nov.	6	Sales.....................		86 units 0 $8
Nov.	19	Purchase..................	20 units (ft $5 = $100
		Totals ....................	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) FEFO and (6) LEFO. (c) Compute the gross margin for each method.