The following three identical units of Item BZ1810 are purchased during November: Item BZ1810 Units Cost Nov. 2 Purchase 1 $55 14 Purchase 1 57 28 Purchase 1 62 Total 3 $174 Average cost per unit $58 ($174 ÷ 3 units) Assume that one unit is sold on November 30 for $90. Determine the gross profit for November and ending inventory on November 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) $ $ b. Last-in, first-out (LIFO) $ $ c. Weighted average cost $ $
The following three identical units of Item BZ1810 are purchased during November: Item BZ1810 Units Cost Nov. 2 Purchase 1 $55 14 Purchase 1 57 28 Purchase 1 62 Total 3 $174 Average cost per unit $58 ($174 ÷ 3 units) Assume that one unit is sold on November 30 for $90. Determine the gross profit for November and ending inventory on November 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) $ $ b. Last-in, first-out (LIFO) $ $ c. Weighted average cost $ $
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 1PEA: The following three identical units of Item BZ1810 are purchased during November: Assume that one...
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Cost Flow Methods
The following three identical units of Item BZ1810 are purchased during November:
| Item BZ1810 | Units | Cost | |||||
|---|---|---|---|---|---|---|---|
| Nov. | 2 | Purchase | 1 | $55 | |||
| 14 | Purchase | 1 | 57 | ||||
| 28 | Purchase | 1 | 62 | ||||
| Total | 3 | $174 | |||||
| Average cost per unit | $58 | ($174 ÷ 3 units) |
Assume that one unit is sold on November 30 for $90.
Determine the gross profit for November and ending inventory on November 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) | $ | $ |
| b. Last-in, first-out (LIFO) | $ | $ |
| c. Weighted average cost | $ | $ |
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