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Cost Flow Methods The following three identical units of Item K113 are purchased during April: Item K113 Units Cost April 2 Purchase 1 $129 April
Cost Flow Methods
The following three identical units of Item K113 are purchased during April:
Item K113 | Units | Cost | ||||
April 2 | Purchase | 1 | $129 | |||
April 14 | Purchase | 1 | 132 | |||
April 28 | Purchase | 1 | 135 | |||
Total | 3 | $396 | ||||
Average cost per unit | $132 | ($396 3 units) |
Assume that one unit is sold on April 30 for $181. 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 | $ | $ |
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