Tree Seedlings has the following current-year purchases and sales for its only product. Units Acquired at...
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Tree Seedlings has the following current-year purchases and sales for its only product. Units Acquired at Cost 50 units Date January 1 January 3 February 14 February 15 June 30 November 6 November 19 Activities Beginning inventory Salesi Purchase Sales Purchase Sales Purchase Totals 78 units 100 units 24 units 252 units @ $2 = $ 100 @ $3 = @$4= @$5 $ 120 $ 854 = $ 234 $ 400 Units Sold at Retail @ $8 @ $8 @ $ 8 34 units 70 units 92 units 196 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. Tree Seedlings has the following current-year purchases and sales for its only product. Units Acquired at Cost 50 units Date January 1 January 3 February 14 February 15 June 30 November 6 November 19 Activities Beginning inventory Salesi Purchase Sales Purchase Sales Purchase Totals 78 units 100 units 24 units 252 units @ $2 = $ 100 @ $3 = @$4= @$5 $ 120 $ 854 = $ 234 $ 400 Units Sold at Retail @ $8 @ $8 @ $ 8 34 units 70 units 92 units 196 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.
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Answer rating: 100% (QA)
a FIFO method Calculate the cost of goods available for sale Beginning inventory 50 units 2 100 Purc... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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