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Cost Flow Methods The following three identical units of Item P401C are purchased during April:   Item Beta   Units   Cost   April   2 Purchase   1   $100            15 Purchase   1   120            20 Purchase   1   140            Total     3   $360            Average cost per unit         $120 ($360 ÷ 3 units) Assume that one unit is sold on April 27 for $300. 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 method.   Gross Profit Ending Inventory a. First-in, first-out (FIFO) $ $ b. Last-in, first-out (LIFO) $ $ c. Weighted average cost $ $

Cost Flow Methods The following three identical units of Item P401C are purchased during April:   Item Beta   Units   Cost   April   2 Purchase   1   $100            15 Purchase   1   120            20 Purchase   1   140            Total     3   $360            Average cost per unit         $120 ($360 ÷ 3 units) Assume that one unit is sold on April 27 for $300. 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 method.   Gross Profit Ending Inventory a. First-in, first-out (FIFO) $ $ b. Last-in, first-out (LIFO) $ $ c. Weighted average cost $ $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cost Flow Methods

The following three identical units of Item P401C are purchased during April:

  Item Beta   Units   Cost  
April   2 Purchase   1   $100  
         15 Purchase   1   120  
         20 Purchase   1   140  
         Total     3   $360  
         Average cost per unit         $120 ($360 ÷ 3 units)

Assume that one unit is sold on April 27 for $300.

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 method.

  Gross Profit Ending Inventory
a. First-in, first-out (FIFO) $ $
b. Last-in, first-out (LIFO) $ $
c. Weighted average cost $ $
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