Cost Flow Methods

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

		Item Alpha		Units		Cost
Apr.	2	Purchase		1		$288
	14	Purchase		1		292
	28	Purchase		1		296
	Total			3		$876
	Average cost per unit					$292	($876 3 units)

Assume that one unit is sold on April 30 for $380.

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