Cost Flow MethodsThe following three identical units of Item P401C are purchased during April: Item Beta Units Cost April   2Purchase 1 $100          15Purchase 1 120          20Purchase 1 140          Total  3 $360          Average cost per unit    $120($360 ÷ 3 units)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 ProfitEnding Inventorya. First-in, first-out (FIFO)$$b. Last-in, first-out (LIFO)$$c. Weighted average cost$$

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Asked Mar 23, 2020
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Cost Flow Methods

The following three identical units of Item P401C are purchased during April:

  Item Beta   Units   Cost  
April   2 Purchase   1   $100  
         15 Purchase   1   120  
         20 Purchase   1   140  
         Total     3   $360  
         Average cost per unit         $120 ($360 ÷ 3 units)

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 $ $

 

 

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Step 2

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)

Accounting homework question answer, step 2, image 1

Accounting homework question answer, step 2, image 2

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