Answered: Three identical units of merchandise…

Three identical units of merchandise were purchased during March, as shown: Steele Plate Units Cost Mar. 3 Purchase 1 $ 830 10 Purchase 1 840 19 Purchase 1 880 Total 3 $2,550

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Three identical units of merchandise were purchased during March, as shown:

Steele Plate Units Cost

Mar. 3 Purchase 1 $ 830

10 Purchase 1 840

19 Purchase 1 880

Total 3 $2,550

Assume that one unit is sold on March 23 for $1,125. What is the gross profit for March using FIFO?

a.$1,670

b.$295

c.$245

d.$1,720

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The following three identical units of Item Alpha are purchased during April: Units Cost Apr. Purchase $76 14 Purchase 81 28 Purchase 83 Total $240 Average cost per unit $80 ($240 ÷ 3 units) eBook Cost Flow Methods Assume that one unit is sold on April 30 for $132. 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 methods. Gross Profit a. First-in, first-out (FIFO) Ending Inventory b. Last-in, first-out (LIFO) c. Weighted average cost
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