Cost Flow Methods The following three identical units of Item B are purchased during June: Item B Units Cost June 2 Purchase 1 $140 12 Purchase 1 152 23 Purchase 158 Total $450 Average cost per unit $150 ($450 + 3 units) Assume that one unit is sold on June 27 for $270. Determine the gross profit for June and ending inventory on June 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost metho Gross Profit Ending Inventory a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost $ --||

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Cost Flow Methods
The following three identical units of Item B are purchased during June:
Item B
Units
Cost
June 2
Purchase
1
$140
12
Purchase
1
152
23
Purchase
1
158
Total
3
$450
Average cost per unit
$150
($450 + 3 units)
Assume that one unit is sold on June 27 for $270.
Determine the gross profit for June and ending inventory on June 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost metho
Gross Profit
Ending Inventory
a. First-in, first-out (FIFO)
$4
$
b. Last-in, first-out (LIFO)
$1
$
c. Weighted average cost
$
$
Transcribed Image Text:Cost Flow Methods The following three identical units of Item B are purchased during June: Item B Units Cost June 2 Purchase 1 $140 12 Purchase 1 152 23 Purchase 1 158 Total 3 $450 Average cost per unit $150 ($450 + 3 units) Assume that one unit is sold on June 27 for $270. Determine the gross profit for June and ending inventory on June 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost metho Gross Profit Ending Inventory a. First-in, first-out (FIFO) $4 $ b. Last-in, first-out (LIFO) $1 $ c. Weighted average cost $ $
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