Question
Cost Flow Methods The following three identical units of Item JC07 are purchased during April: Item Beta Units Cost April 2 Purchase 1 $257 April
Cost Flow Methods
The following three identical units of Item JC07 are purchased during April:
| Item Beta | Units | Cost | ||||
| April 2 | Purchase | 1 | $257 | |||
| April 15 | Purchase | 1 | 261 | |||
| April 20 | Purchase | 1 | 265 | |||
| Total | 3 | $783 | ||||
| Average cost per unit | $261 | ($783 3 units) |
Assume that one unit is sold on April 27 for $321. 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 Profit | Ending Inventory | |
| a. First-in, first-out (FIFO) | $fill in the blank 1 | $fill in the blank 2 |
| b. Last-in, first-out (LIFO) | $fill in the blank 3 | $fill in the blank 4 |
| c. Weighted average cost | $fill in the blank 5 | $fill in the blank 6 |
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Horngrens Cost Accounting A Managerial Emphasis
Authors: Srikant M. Datar, Madhav V. Rajan
17th Edition
0135628474, 9780135628478
