Three identical units of merchandise were purchased during March, as shown: Steele Plate Units Cost Mar. 3 Purchase 1 $ 830 10 Purchase 840 19 Purchase 880 Total 3 $2,550 Assume that one unit is sold on March 23 for $1,125. What is the gross profit for March using FIFO? Oa. $1,670 Оь. 5245 Oc. $1,720 Od. $295

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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Three identical units of merchandise were purchased during March, as shown:
Steele Plate
Units Cost
Mar. 3 Purchase
1
$ 830
10 Purchase
1
840
19 Purchase
1
880
Total
3
$2,550
Assume that one unit is sold on March 23 for $1,125. What is the gross profit for March using FIFO?
Oa. $1,670
Ob. $245
Oc. $1,720
Od. $295
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Transcribed Image Text:Three identical units of merchandise were purchased during March, as shown: Steele Plate Units Cost Mar. 3 Purchase 1 $ 830 10 Purchase 1 840 19 Purchase 1 880 Total 3 $2,550 Assume that one unit is sold on March 23 for $1,125. What is the gross profit for March using FIFO? Oa. $1,670 Ob. $245 Oc. $1,720 Od. $295 Previous Next>
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