1. Assume that three identical units are purchased separately at the following three dates and costs: May 1st at $45, May 3 at $65, and May 6 at $70. One unit is then sold on May 7 for $100. Discuss the flow of costs to either the gross profit section of the income statement or the inventory reported on the balance sheet for FIFO, LIFO and the weighted average.

2. What is the consistency concept , define it in your own language and give a good example!