Cost flow methods The following three identical units of Item P401C are purchased during April: Item Beta Units Cost Apr. 2 Apr. 15 Apr. 20 Total Average cost per unit ($360 ÷ 3 units) Purchase 1 $100 Purchase 1 120 Purchase 1 140 3 $360 $120 Assume that one unit is sold on April 27 for $300. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost method. Gross Profit Ending Inventory a. First-in, first-out (FIFO) $ b. Last-in, first-out (LIFO) c. Weighted average cost $ 69 69

Cost flow methods The following three identical units of Item P401C are purchased during April: Item Beta Units Cost Apr. 2 Apr. 15 Apr. 20 Total Average cost per unit ($360 ÷ 3 units) Purchase 1 $100 Purchase 1 120 Purchase 1 140 3 $360 $120 Assume that one unit is sold on April 27 for $300. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost method. Gross Profit Ending Inventory a. First-in, first-out (FIFO) $ b. Last-in, first-out (LIFO) c. Weighted average cost $ 69 69

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 1PEA: The following three identical units of Item A are purchased during April: Assume that one unit is...

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