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) $fill in the blank 1 $fill in the blank 2 b. Last-in, first-out (LIFO) $fill in the blank 3 $fill in the blank 4 c. Weighted average cost $fill in the blank 5 $fill in the blank 6

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A: The gross profit is calculated as the difference between the sales and cost of goods sold. The net…

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A: Gross profit = Sales - Cost of goods sold Ending inventory = Total cost of goods available for sale…

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A:

Q: Cost flow methods The following three identical units of Item P401C are purchased during April:…

A: The objective of this question is to calculate the gross profit and ending inventory for the month…

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A: Under the FIFO method, the oldest products in inventory are sold first.Under the LIFO method, the…

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A: Ending inventory means the amount of inventory that an entity has on hand at the end of the period.…

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A: Average cost per unit = Total cost of Goods available for sale / Total no. of units available for…

Q: Cost flow methods The following three identical units of Item P401C are purchased during April: Item…

A: Based from the given data:- Purchase 1: 1 unit at $100- Purchase 2: 1 unit at $120- Purchase 3: 1…

Q: Cost Flow Methods The following three identical units of Item K113 are purchased during April:…

A: Gross profit = Sales - Cost

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A: The inventory valuation method is used to estimate the ending inventory and gross profit and these…

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A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

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A: The question is based on the concept of Cost Accounting.

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A: as per the FIFO method units purchased first will be sold first. FIFO method is the most widely used…

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A: Explanation of the weighted average cost method:The weighted average cost method calculates…

Q: Cost Flow Methods The following three identical units of Item JC07 are purchased during April:…

A: Solution:- Calculation of the gross profit for April and ending inventory on April 30 as follow:-

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A: Sales Revenue = $51   Under the FIFO method, goods purchased at the earliest are sold first.…

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A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…

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A: Lets understand the basics.Ending inventory and cost of goods sold can be calculated by,(1) FIFO(2)…

Q: pre.2

A: The objective of the question is to calculate the cost per unit for the units in ending inventory…

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A: Inventory valuation is referred to as that method which helps in assigning a monetary value to the…

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A: LIFO: LIFO stands for Last-In, First-Out. As its name suggest, this method assumes that the most…

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A: To determine the gross profit and ending inventory using different cost flow methods, we will go…

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A: The first in, first out (FIFO) accounting approach is based on a cost flow assumption that deducts…

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A: First in First out (FIFO) is one of the inventory valuation methods in which the earliest inventory…

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A: The total cost of goods available for sale is the sum of the cost of the beginning inventory and the…

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A: Inventory valuation is referred to as that method which helps in assigning a monetary value to the…

Q: Cost Flow Methods The following three identical units of Item Alpha are purchased during April: Item…

A:

Q: The following three identical units of item P401C are purchased Item Beta Units Cost Purchase 1 $307…

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.