Question
Three identical units of merchandise were purchased during July, as follows: Date Product T Units Cost July 3 Purchase 1 $32.00 10 Purchase 1 35.00
Three identical units of merchandise were purchased during July, as follows:
| Date | Product T | Units | Cost |
| July 3 | Purchase | 1 | $32.00 |
| 10 | Purchase | 1 | 35.00 |
| 24 | Purchase | 1 | 38.00 |
| Total | 3 | $105.00 | |
| Average cost | per unit | $35.00 |
Assume one unit sells on July 28 for $49.00.
Determine the gross profit, cost of goods sold, and ending inventory on July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) average cost flow methods.
| Gross Profit | Cost of Goods Sold | Ending Inventory | |
| a) First-in, first-out | $ | $ | $ |
| b) Last-in, first-out | $ | $ | $ |
| c) Average | $ | $ | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
