Question
Cost Flow Methods The following three identical units of Item LO3V are purchased during April: Item Beta Units Cost April 2 Purchase 1 $305 April
Cost Flow Methods
The following three identical units of Item LO3V are purchased during April:
| Item Beta | Units | Cost | ||||
| April 2 | Purchase | 1 | $305 | |||
| April 15 | Purchase | 1 | 309 | |||
| April 20 | Purchase | 1 | 313 | |||
| Total | 3 | $927 | ||||
| Average cost per unit | $309 | ($927 3 units) |
Assume that one unit is sold on April 27 for $392. 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) | $ | $ |
| b. Last-in, first-out (LIFO) | $ | $ |
| c. Weighted average cost | $ | $ |
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Marketing
Authors: Roger Kerin, Steven Hartley, William Rudelius
16th Edition
1264218753, 978-1264218752
