Cost flow methods The following three identical units of Item P401C are purchased during Aorit \begin{tabular}{llllr} \hline Apr. 2 & Item Beta & Units & Cost \\ Apr. & 15 & Purchase & 1 & $172 \\ Apr. & 20 & Purchase & 1 & 174 \\ & Total & Purchase & 1 & 176 \\ & & & 3 & $522 \\ \hline Average cost per unit ($522+3 units ) & & & $174 \\ \hline \end{tabular} Assume that one unit is sold on April 27 for $247. method. Feedoack F Check Ny Work a. Sales - cost of goods sold s gross profit. FIFo means that the first units purchased are assumed to be the first to be sola. Therefore, enaing inventary is moor up of the most recent purchases. b. Sales - cost of goods sold = gross profit. LIFO means the last units purchased are assumed to be the fint to te sold. Therefore, efaing invertory a maif up of the first purchases. c. Sales - cost of goods sold = grass profit. Averoge cost means the average cost of all avallable units purchased is applied to the number of units sole and in