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Cost Flow Methods The following three identical units of Item Alpha are purchased during April: Item Alpha Units Cost Apr. 2 Purchase 1 $76 14
Cost Flow Methods
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) |
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.
Gross Profit | Ending Inventory | |
a. First-in, first-out (FIFO) | ||
b. Last-in, first-out (LIFO) | ||
c. Weighted average cost |
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