Cost Flow Methods The following three identical units of Item K113 are purchased during April: Item K113 Units Cost April 2 Purchase 1 $133 April 14 Purchase 1 135 April 28 Purchase 1 137 Total 3 $405 Average cost per unit $135 ($405 ÷ 3 units) Assume that one unit is sold on April 30 for $192. 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. Gross Profit Ending Inventory a. First-in, first-out (FIFO) $ $ b. Last-in, first-out (LIFO) $ $ c. Weighted average cost $ $
Cost Flow Methods The following three identical units of Item K113 are purchased during April: Item K113 Units Cost April 2 Purchase 1 $133 April 14 Purchase 1 135 April 28 Purchase 1 137 Total 3 $405 Average cost per unit $135 ($405 ÷ 3 units) Assume that one unit is sold on April 30 for $192. 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. Gross Profit Ending Inventory a. First-in, first-out (FIFO) $ $ b. Last-in, first-out (LIFO) $ $ c. Weighted average cost $ $
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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Cost Flow Methods
The following three identical units of Item K113 are purchased during April:
Item K113 | Units | Cost | ||||
April 2 | Purchase | 1 | $133 | |||
April 14 | Purchase | 1 | 135 | |||
April 28 | Purchase | 1 | 137 | |||
Total | 3 | $405 | ||||
Average cost per unit | $135 | ($405 ÷ 3 units) |
Assume that one unit is sold on April 30 for $192. 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.
Gross Profit | Ending Inventory | |
a. First-in, first-out (FIFO) | $ | $ |
b. Last-in, first-out (LIFO) | $ | $ |
c. Weighted average cost | $ | $ |
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