Cost Flow Methods

The following three identical units of Item Beta are purchased during June:

	Item Beta		Units		Cost
June 2	Purchase		1		$50
12	Purchase		1		60
23	Purchase		1		70
Total			3		$180
Average cost per unit					$60	($180 3 units)

Assume that one unit is sold on June 27 for $110.

Determine the gross profit for June and ending inventory on June 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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