Question
Assume that three identical units of merchandise are purchased during October, as follows: Units Cost October 5 Purchase 1 $5 October 12 Purchase 1 7
Assume that three identical units of merchandise are purchased during October, as follows:
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|
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| Units | Cost |
| October | 5 | Purchase | 1 | $5 |
| October | 12 | Purchase | 1 | 7 |
| October | 28 | Purchase | 1 | 9 |
| Total |
|
| 3 | $21 |
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|
|
|
|
|
Assume one unit is sold on October 31 for $15. Determine Cost of Merchandise Sold, Gross Profit, and Ending Inventory under the Average Cost method.
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Accounting For Beginners
Authors: Kokab Rahman
1st Edition
149479294X, 978-1494792947
