Cost Flow Methods

The following three identical units of Item LO3V are purchased during April:

Item Beta Units Cost

April 2Purchase 1 $144

April 15Purchase 1 145

April 20Purchase 1 146

Total 3 $435

Average cost per unit $145($435 3 units)

Assume that one unit is sold on April 27 for $190. 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$$