Cost Flow Methods

The following three identical units of Item BZ1810 are purchased during November:

		Item BZ1810		Units		Cost
Nov.	2	Purchase		1		$55
	14	Purchase		1		57
	28	Purchase		1		62
	Total			3		$174
	Average cost per unit					$58	($174 3 units)

Assume that one unit is sold on November 30 for $90.

Determine the gross profit for November and ending inventory on November 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	$	$