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 Activities Beginning inventory Units Acquired at Cost 160 units Units Sold at Retail @ $2 = $ 320 January 3 February 14 Sales Purchase 110 units 246 units $3 = $ 738 February 15 June 30 Sales 180 units @ $ 8 @ $ 8 November 6 Purchase Sales 210 units @ $4 = $ 840 158 units $ 8 November 19 Purchase 68 units @ $5 = $ 340 Totals 684 units $ 2,238 448 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
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 Activities Beginning inventory Units Acquired at Cost 160 units Units Sold at Retail @ $2 = $ 320 January 3 February 14 Sales Purchase 110 units 246 units $3 = $ 738 February 15 June 30 Sales 180 units @ $ 8 @ $ 8 November 6 Purchase Sales 210 units @ $4 = $ 840 158 units $ 8 November 19 Purchase 68 units @ $5 = $ 340 Totals 684 units $ 2,238 448 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
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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