The following three identical units of Item Beta are purchased during June: Item Beta Units Cost June 2 Purchase 1 $50 12 Purchase 1 60 23 Purchase 1 70 Total 3 $180 Average cost per unit $60 ($180 ÷ 3 units) 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. Gross Profit Ending Inventory a. First-in, first-out (FIFO) $fill in the blank 1 $fill in the blank 2 b. Last-in, first-out (LIFO) $fill in the blank 3 $fill in the blank 4 c. Weighted average cost $fill in the blank 5 $fill in the blank 6
The following three identical units of Item Beta are purchased during June: Item Beta Units Cost June 2 Purchase 1 $50 12 Purchase 1 60 23 Purchase 1 70 Total 3 $180 Average cost per unit $60 ($180 ÷ 3 units) 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. Gross Profit Ending Inventory a. First-in, first-out (FIFO) $fill in the blank 1 $fill in the blank 2 b. Last-in, first-out (LIFO) $fill in the blank 3 $fill in the blank 4 c. Weighted average cost $fill in the blank 5 $fill in the blank 6
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 1PEB: The following three identical units of Item Beta are purchased during June: Assume that one unit is...
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Cost Flow Methods
The following three identical units of Item Beta are purchased during June:
Item Beta | Units | Cost | ||||
June 2 | Purchase | 1 | $50 | |||
12 | Purchase | 1 | 60 | |||
23 | Purchase | 1 | 70 | |||
Total | 3 | $180 | ||||
Average cost per unit | $60 | ($180 ÷ 3 units) |
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.
Gross Profit | Ending Inventory | |
a. First-in, first-out (FIFO) | $fill in the blank 1 | $fill in the blank 2 |
b. Last-in, first-out (LIFO) | $fill in the blank 3 | $fill in the blank 4 |
c. Weighted average cost | $fill in the blank 5 | $fill in the blank 6 |
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