The following three identical units of Item JC07 are purchased during April: Item JC07 Units Cost April 2Purchase 1 $220 April 14Purchase 1 223 April 28Purchase 1 226 Total  3 $669 Average cost per unit    $223($669 ÷ 3 units)Assume that one unit is sold on April 30 for $301. 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.

Question
Asked Nov 6, 2019

The following three identical units of Item JC07 are purchased during April:

  Item JC07   Units   Cost  
April 2 Purchase   1   $220  
April 14 Purchase   1   223  
April 28 Purchase   1   226  
Total     3   $669  
Average cost per unit         $223 ($669 ÷ 3 units)

Assume that one unit is sold on April 30 for $301. 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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Step 1

Calculation of gross profit and end...

C
A
Ending
Profit (S) Inventory (S)
Gross
Item JC07 Units
Cost (S)
1
Purchase
Purchase
Purchase
2 April 2
220
223
226
=D2+D3+D4
14
28
4
3
Total
5
6 Average cost per unit
7 April 30
8 (a). First-in, first-out (FIFO)
9 (b). Last-in, first-out (LIFO
10 (c). Weighted average cost
=D5/C5
|Sales
301
=D7- D2
=D7-D4
=D3 + D4
D2+D3
=D7-D6
=D6*2
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C A Ending Profit (S) Inventory (S) Gross Item JC07 Units Cost (S) 1 Purchase Purchase Purchase 2 April 2 220 223 226 =D2+D3+D4 14 28 4 3 Total 5 6 Average cost per unit 7 April 30 8 (a). First-in, first-out (FIFO) 9 (b). Last-in, first-out (LIFO 10 (c). Weighted average cost =D5/C5 |Sales 301 =D7- D2 =D7-D4 =D3 + D4 D2+D3 =D7-D6 =D6*2

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