Cost Flow Methods The following three identical units of Item B are purchased during June: Item B Purchase Purchase June 2 12 23 Total Purchase Units Cost $140 152 158 $450 $150 ($450 + 3 units) a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost 1 1 1 3 Average cost per unit Assume that one unit is sold on June 27 for $270. 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. Ending Inventory 1000 Gross Profit $

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Cost Flow Methods
The following three identical units of Item B are purchased during June:
June 2
12
23
Total
Item B
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
Purchase
Purchase
Purchase
Units
$
$
1
1
1
3
Cost
$140
152
158
Average cost per unit
Assume that one unit is sold on June 27 for $270.
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
$450
$150 ($450+ 3 units)
$
Transcribed Image Text:Cost Flow Methods The following three identical units of Item B are purchased during June: June 2 12 23 Total Item B a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost Purchase Purchase Purchase Units $ $ 1 1 1 3 Cost $140 152 158 Average cost per unit Assume that one unit is sold on June 27 for $270. 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 $450 $150 ($450+ 3 units) $
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