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Cost Flow Methods The following three identical units of Item P401C are purchased during April: April 2 Item Beta Purchase Purchase Purchase Units 1 1 i Cost $100 120 140 $360 Total 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) b. Last-in, first-out (LIFO) c. Weighted average cost Periodic inventory by three methods; cost of goods sold The units of an item available for sale during the year were as follows: Jan. 1 Mar. 10 Inventory Purchase 30 units at $122 40 units at $134 Aug. 30 Purchase 10 units at $138 Dec. 12 Purchase 120 units at $142 There are 40 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Ending Inventory and cost of Goods Sold Inventory Method Ending Inventory Cost of Goods Sold First-in, first-out (FIFO) $ Last-in, first-out (LIFO) Weighted average cost +(90) Lower-of-Cost-or-Market Inventory On the basis of the following data: Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Product Model A $68 $61 101 Model B Model C 116 Model D 280 Model E Determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9. Inventory at the Lower of Cost or Market Total Market Lower of Total Cost or Total Market Product Total Cost Total Inventory on the balance sheet Based on the data below, how would the inventory appear on the balance sheet, assuming that the lower of cost or market is used and the cost is determined by the First-in, first-out (FIFO) method? Total cost: $248,000 Total market: $252,350 Lower-of-cost-or-market (LCM): $239,350 The inventory would appear in the section, as follows