Required The company uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. (c) Compute the gross margin for each method. Tree Seedlings has the following current-year purchases and sales for its only product.DateActivitiesUnits Acquired at CostUnits Sold at RetallJan. 1Beginning inventory..40 units @ $2 =$ 80Jan. 3Sales....30 units @ $8Feb. 14Purchase..70 units @ $3= $210Feb. 15Sales..60 units @ $8June 30Purchase.90 units @ $4 = $360Nov. 6Sales..86 units @ $8Nov. 19Purchase..20 units @ $5 = $100%3DTotals220 units$750176 units

Name: Required The company uses a perpetual inventory system. Determine the
Uploaded: 2024-03-20T06:32:37.000Z
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Description: Required The company uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and (b) LIFO. (c) Compute the gross margin for each method. Tree Seedlings has the following current-yea

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Answered: Tree Seedlings has the following…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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The company uses a perpetual inventory system. Determine the costs assigned to ending inventory and to
cost of goods sold using (a) FIFO and (b) LIFO. (c) Compute the gross margin for each method.

Tree Seedlings has the following current-year purchases and sales for its only product.
Date
Activities
Units Acquired at Cost
Units Sold at Retall
Jan. 1
Beginning inventory..
40 units @ $2 =$ 80
Jan. 3
Sales....
30 units @ $8
Feb. 14
Purchase..
70 units @ $3= $210
Feb. 15
Sales..
60 units @ $8
June 30
Purchase.
90 units @ $4 = $360
Nov. 6
Sales..
86 units @ $8
Nov. 19
Purchase..
20 units @ $5 = $100
%3D
Totals
220 units
$750
176 units

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