The following three identical units of Item LO3V are purchased during April: Item L03V Units Cost April 2 Purchase $236 April 14 Purchase 239 April 28 Purchase 1 242 Total $717 Average cost per unit $239 ($717 ÷ 3 units) Assume that one unit is sold on April 30 for $325. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, firskrout (LIFO); and (c) weighted average cost methods. Gross Profit Ending Inventory $4 %24 a. First-in, first-out (FIFO) $4 b. Last-in, first-out (LIFO) c. Weighted average cost

The following three identical units of Item LO3V are purchased during April: Item L03V Units Cost April 2 Purchase $236 April 14 Purchase 239 April 28 Purchase 1 242 Total $717 Average cost per unit $239 ($717 ÷ 3 units) Assume that one unit is sold on April 30 for $325. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, firskrout (LIFO); and (c) weighted average cost methods. Gross Profit Ending Inventory $4 %24 a. First-in, first-out (FIFO) $4 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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Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-13Refer to the information for Barnard Company above. Prime cost per unit is a. 7.00. b. 20.00. c. 15.00. d. 5.00. e. 27.60.
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Communication Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Date Units Purchased Unit Cost Total Cost April 6 31,000 36.60 1,134,600 May 18 33,000 39.00 1,287,000 June 6 40,000 39.60 1,584,000 July 10 40,000 42.00 1,680,000 August 10 27,200 42.75 1,162,800 October 25 12,800 43.50 556,800 November 4 8,000 44.85 358,800 December 10 8,000 48.00 384,000 200,000 8,148,000 Sales: April 16,000 units May 16,000 June 20,000 July 24,000 August 28,000 September 28,000 October 18,000 November 10,000 December 8,000 Total Units 168,000 Total sales 10,000,000 The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.