The following three identical units of Item Alpha are purchased during April: Item Alpha Units Cost Apr. Purchase $76 14 Purchase 1 81 28 Purchase 1 83 Total $240 $80 ($240 ÷ 3 units) Average cost per unit Assume that one unit is sold on April 30 for $132. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, and (c) weighted average cost methods. Gross Profit Ending Inventory a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) %$4 c. Weighted average cost

The following three identical units of Item Alpha are purchased during April: Item Alpha Units Cost Apr. Purchase $76 14 Purchase 1 81 28 Purchase 1 83 Total $240 $80 ($240 ÷ 3 units) Average cost per unit Assume that one unit is sold on April 30 for $132. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, and (c) weighted average cost methods. Gross Profit Ending Inventory a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) %$4 c. Weighted average cost

Name: Cost Flow MethodsThe following three identical units of Item Alpha ar
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Description: Cost Flow MethodsThe following three identical units of Item Alpha are purchased during April:Item AlphaUnitsCostApr.Purchase$7614Purchase18128Purchase183Total3$240$80 ($240 ÷ 3 units)Average cost per unitAssume that one unit is sold on April 30 for

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.
The following three identical units of Item Beta are purchased during June: Assume that one unit is sold on June 27 for 110. Determine the gross profit for June and ending inventory on June 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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Comparison of Inventory Costing Methodsâ€”Periodic System Bitten Companys inventory records show 600 units on hand on October 1 with a unit cost of $5 each. The following transactions occurred during the month of October: All expenses other than cost of goods sold amount to $3,000 for the month. The company uses an estimated tax rate of 30% to accrue monthly income taxes. Required Prepare a chart comparing cost of goods sold and ending inventory using the periodic system and the following costing methods: What does the Total column represent? Prepare income statements for each of the three methods. Will the company pay more or less tax if it uses FIFO rather than LIFO? How much more or less?
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