Cost Flow Methods now Me HOW The following three identical units of Item Alpha are purchased during April: Item Alpha Units Cost Apr. 2 Purchase 1 $76 14 Purchase 1 81 28 Purchase 1 83 Total 3 $240 Average cost per unit $80 ($240+3 units) PrintItem 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. a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost Gross Profit Ending Inventory 56 V 164 V 49 V 157 V 160 Check My Work a Sales - cost of merchandise sold gross profit. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending inventory is made up of the most recent purchases. b. Sales-cost of merchandise sold gross profit LIFO means the last units purchased are assumed to be the first to be sold. Therefore, ending inventory is made up of the first purchases c. Sales-cost of merchandise sold gross profit. Average cost means the average cost of all available units purchased is applied to the number of units sold and in ending inventory