Cost Flow Methods

The following three identical units of Item P401C are purchased during April:

Item Beta Units Cost

April2 Purchase 1 $100

15 Purchase 1 120

20 Purchase 1 140

Total 3 $360

Average cost per unit $120($360 3 units)

Assume that one unit is sold on April 27 for $300.

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 method.

Gross ProfitEnding Inventory

a. First-in, first-out (FIFO)$$

b. Last-in, first-out (LIFO)$$

c. Weighted average cost$$