Cost flow methods The following three identical units of Item P401C are purchased during April: Item Beta Units Cost Apr. 2 Apr. 15 Apr. 20 Total Average cost per unit ($360 ÷ 3 units) Purchase 1 $100 Purchase 1 120 Purchase 1 140 3 $360 $120 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 $ 69 69
Cost flow methods The following three identical units of Item P401C are purchased during April: Item Beta Units Cost Apr. 2 Apr. 15 Apr. 20 Total Average cost per unit ($360 ÷ 3 units) Purchase 1 $100 Purchase 1 120 Purchase 1 140 3 $360 $120 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 $ 69 69
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 1PEA: The following three identical units of Item A are purchased during April: Assume that one unit is...
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![Cost flow methods
The following three identical units of Item P401C are purchased during April:
Item Beta Units Cost
Apr. 2
Apr. 15
Apr. 20
Total
Average cost per unit ($360 ÷ 3 units)
Purchase
1 $100
Purchase
1
120
Purchase
1
140
3
$360
$120
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
$
69
69](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F17c779a2-e923-4f6d-83c3-83f87a5c1386%2F28c9c990-1f1f-4a62-941b-12c385914de7%2Ft5sxmr8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cost flow methods
The following three identical units of Item P401C are purchased during April:
Item Beta Units Cost
Apr. 2
Apr. 15
Apr. 20
Total
Average cost per unit ($360 ÷ 3 units)
Purchase
1 $100
Purchase
1
120
Purchase
1
140
3
$360
$120
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
$
69
69
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