Cost Flow Methods The following three identical units of Item LO3V are purchased during April: Item Beta Units Cost Purchase 1 [.. Purchase. 1 Purchase 1 3 Average cost per unit. Assume that one unit is sold on April 27 for $301. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost method. April 2 April 15 April 20 Total a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost 1000 Gross Profit 82 $219 221 223 $663 $221 ($663+ 3 units) Ending Inventory X
Cost Flow Methods The following three identical units of Item LO3V are purchased during April: Item Beta Units Cost Purchase 1 [.. Purchase. 1 Purchase 1 3 Average cost per unit. Assume that one unit is sold on April 27 for $301. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost method. April 2 April 15 April 20 Total a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost 1000 Gross Profit 82 $219 221 223 $663 $221 ($663+ 3 units) Ending Inventory X
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 1PEA: The following three identical units of Item A are purchased during April: Assume that one unit is...
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![Cost Flow Methods
The following three identical units of Item LO3V are purchased during April:
Item Beta
Purchase
1
Purchase
1
[[
Purchase
1
3
April 2
April 15
April 20
Total
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
$
Units Cost
$
Average cost per unit
$221 ($663 3 units)
Assume that one unit is sold on April 27 for $301. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost method.
Gross Profit
82 ✔
$219
X
221
223
$663
Ending Inventory
$
X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F75d8f333-11d1-4432-9a73-7a65f0b6a787%2F61eaba25-2ec1-4cb7-b012-c2c16db49f07%2Fzialcjci_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cost Flow Methods
The following three identical units of Item LO3V are purchased during April:
Item Beta
Purchase
1
Purchase
1
[[
Purchase
1
3
April 2
April 15
April 20
Total
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
$
Units Cost
$
Average cost per unit
$221 ($663 3 units)
Assume that one unit is sold on April 27 for $301. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost method.
Gross Profit
82 ✔
$219
X
221
223
$663
Ending Inventory
$
X
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