Question
Three identical units of merchandise were purchased during July, as follows: Units Cost July 3 Purchase 1 $32 10 Purchase 1 35 24 Purchase 1
Three identical units of merchandise were purchased during July, as follows:
| Units | Cost | ||
| July 3 | Purchase | 1 | $32 |
| 10 | Purchase | 1 | 35 |
| 24 | Purchase | 1 | 38 |
| Total | 3 | $105 | |
| Average cost per unit | $35 |
Assume one unit sells on July 28 for $49.
Determine the gross profit, cost of merchandise sold, and ending inventory on July 31 using the (a) first-in, first-out, (b) last-in, first-out, and (c) weighted average cost flow methods.
| Gross Profit | Cost of Merchandise Sold | Ending Inventory | |
| a. First-in, first-out | |||
| b. Last-in, first-out | |||
| c. Weighted average cost |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
