Cost Flow Methods The following three identical units of Item K113 are purchased during April Item Beta Cost Units 1 April 2 Purchase $153 April 15 Purchase 1 155 April 20 Purchase 1 157 Total 3 $465 Average cost per unit $155 ($4653 units) Assume that one unit is sold on April 27 for $219. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-mn, first-out i (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
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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COst Flow Methods
The following thren identical units of Item K113 are purchased during April
Item Beta
Units
Cost
April 2
Purchase
$153
April 15
Purchase
155
April 20
Purchase
157
Total
$465
Average cost per unit
$155
(s4653 units)
Assume that one unit is sold on Apri 27 for $219. Detemime the gross profit for April and ending ventory on April 30 using the (a) first-in, first-out (FIro), (b) last-n, 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)
Weighted average cost
Transcribed Image Text:COst Flow Methods The following thren identical units of Item K113 are purchased during April Item Beta Units Cost April 2 Purchase $153 April 15 Purchase 155 April 20 Purchase 157 Total $465 Average cost per unit $155 (s4653 units) Assume that one unit is sold on Apri 27 for $219. Detemime the gross profit for April and ending ventory on April 30 using the (a) first-in, first-out (FIro), (b) last-n, 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) Weighted average cost
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