Question
The following three identical units of item ABC are purchased during July: Item ABCUnitsCostJuly 9Purchase1$3016Purchase14027Purchase 150 Total3$120Average cost per unit$40($120 3 units) Assume that one
The following three identical units of item ABC are purchased during July:
Item ABCUnitsCostJuly 9Purchase1$3016Purchase14027Purchase150Total3$120Average cost per unit$40($120 3 units)
Assume that one unit is sold on July 30 for $64. Determine the gross profit for July and ending inventory on July 31 using the last-in, first out (LIFO) method.
a.Gross profit = $24; ending inventory = $80
b.Gross profit = $34; ending inventory = $90
c.Gross profit = $14; ending inventory = $70
d.Gross profit = $34; ending inventory = $80
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Auditing Cases An Interactive Learning Approach
Authors: Steven M Glover, Douglas F Prawitt
4th Edition
978-0132423502
