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Tree Seedlings has the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost 130 units @ $2 - $ 260 98 units @ $8 192 units @ $3 = $ 576 Date Activities Jan. 1 Beginning inventory Jan. 3 Sales Feb. 14 Purchase Feb.15 Sales June 30 Purchase Nov. 6 Sales Nov.19 Purchase Totals 150 units @ $8 180 units @ $4 - S 720 140 units @ $8 56 units @ $5 $ 280 $1,836 558 units 388 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 margin for each method. Perpetual FIFO: Goods Purchased # of units unit Cost per Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Date Inventory Balance Cost per Inventory # of units unit Balance 130 @ $ 2.00 = $ 260.00 January 1 January 3 February 14 February 15 June 30 November 6 November 19 Totals $ 0.00 Perpetual LIFO: Goods Purchased # of Cost per units unit Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Date Cost per Inventory Balance Inventory # of units unit Balance 130 @ $ 2.00 = $ 260.00 January 1 January 3 February 14 February 15 June 30 November 6 November 19 Totals $ 0.00 FIFO: LIFO: Sales revenue Cost of goods sold Gross margin $ 0 $ 0

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