Cost Flow Methods

The following three identical units of Item K113 are purchased during April:

	Item K113		Units		Cost
April 2	Purchase		1		$293
April 14	Purchase		1		296
April 28	Purchase		1		299
Total			3		$888
Average cost per unit					$296	($888 3 units)

Assume that one unit is sold on April 30 for $361. 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

$

$

Cost Flow Methods

The following three identical units of Item K113 are purchased during April:

	Item K113		Units		Cost
April 2	Purchase		1		$293
April 14	Purchase		1		296
April 28	Purchase		1		299
Total			3		$888
Average cost per unit					$296	($888 3 units)

Assume that one unit is sold on April 30 for $361. 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	$	$