Cost Flow Methods

Three identical units of Item K113 are purchased during July, as shown below.

	Item K113		Units		Cost
July 9	Purchase		1		$248
July 17	Purchase		1		249
July 26	Purchase		1		250
Total			3		$747
Average cost per unit					$249	($747 3 units)

Assume that one unit is sold on July 31 for $321. Determine the gross profit for July and ending inventory on July 31 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	$	$