Cost Flow Methods

Three identical units of Item PX2T are purchased during July, as shown below.

Item PX2T Units Cost

July 9 Purchase 1 $277

July 17 Purchase 1 279

July 26 Purchase 1 281

Total 3 $837

Average cost per unit $279 ($837 3 units)

Assume that one unit is sold on July 31 for $393. 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 $