Cost Flow Methods The following three identical units of Item JC07 are purchased during April: April 2 April 15 April 20 Total Average cost per unit Item Beta Units Cost Purchase 1 $93 Purchase 1 97 Purchase 1 101 3 $291 $97 ($291 ÷ 3 units) Assume that one unit is sold on April 27 for $129. 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. a. First-in, first-out (FIFO). b. Last-in, first-out (LIFO) c. Weighted average cost Check My Work Gross Profit A LA Ending Inventory ☐ ☐ ☐ A A SA Previous Next

Cost Flow Methods The following three identical units of Item JC07 are purchased during April: April 2 April 15 April 20 Total Average cost per unit Item Beta Units Cost Purchase 1 $93 Purchase 1 97 Purchase 1 101 3 $291 $97 ($291 ÷ 3 units) Assume that one unit is sold on April 27 for $129. 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. a. First-in, first-out (FIFO). b. Last-in, first-out (LIFO) c. Weighted average cost Check My Work Gross Profit A LA Ending Inventory ☐ ☐ ☐ A A SA Previous Next

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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The following three identical units of Item A are purchased during April: Assume that one unit is sold on April 30 for 118. 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 methods.
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