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Assume that three identical units of merchandise are purchased during October, as follows: Units Cost October 5 Purchase 1 $5 12 Purchase 1 7 28
Assume that three identical units of merchandise are purchased during October, as follows:
Units
Cost
October
5
Purchase
1
$5
12
Purchase
1
7
28
Purchase
1
9
Total
3
$21
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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