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Tree Seedlings has the following current-year purchases and sales for its only product. The company uses a periodic 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.

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ammary456

This question is incomplete. The complete question, answer & explanation for this question is given in the attachment below.

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ayokenny2001

Please see attached concluding part of the question as it is incomplete.

a. Costs assigned to ending inventory and to cost of goods sold using FIFO

i Cost of ending inventory

FIFO = {(20 * 5) + (24 * 4)}

        = 100 + 96

        = 196

ii Cost of good sold

FIFO = 750 - 196

        = 554

b. Costs assigned to ending inventory and to cost of goods sold using LIFO

i Cost of ending inventory

LIFO = {(40 * 2) + (4 * 3)}

        = 80 + 12

        = 92

ii Cos of goods sold

LIFO = 750 - 92

        = 658

c. Gross margin for each method (FIFO and LIFO)

FIFO

Sales  (176 * 8)         1,408

less:

Cost of goods sold  554

Gross margin           854

LIFO

Sales (176 * 8)          1,408

less:

Cos of good sold     658

Gross margin            750

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