Cost flow methods The following three identical units of Item P401C are purchased during April: Date Item Beta Units Cost Apr. 2 Purchase 1 $227 Apr. 15 Purchase 1 229 Apr. 20 Purchase 1 231 Total 3 $687 Average cost per unit ($687 ÷ 3 units) $229 Assume that one unit is sold on April 27 for $305. 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. Line Item Description Gross Profit Ending Inventory a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost
Cost flow methods The following three identical units of Item P401C are purchased during April: Date Item Beta Units Cost Apr. 2 Purchase 1 $227 Apr. 15 Purchase 1 229 Apr. 20 Purchase 1 231 Total 3 $687 Average cost per unit ($687 ÷ 3 units) $229 Assume that one unit is sold on April 27 for $305. 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. Line Item Description Gross Profit Ending Inventory a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Cost flow methods
The following three identical units of Item P401C are purchased during April:
| Date | Item Beta | Units | Cost |
|---|---|---|---|
| Apr. 2 | Purchase | 1 | $227 |
| Apr. 15 | Purchase | 1 | 229 |
| Apr. 20 | Purchase | 1 | 231 |
| Total | 3 | $687 | |
| Average cost per unit ($687 ÷ 3 units) | $229 |
Assume that one unit is sold on April 27 for $305.
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.
| Line Item Description | Gross Profit | Ending Inventory |
|---|---|---|
| a. First-in, first-out (FIFO) | ||
| b. Last-in, first-out (LIFO) | ||
| c. Weighted average cost |
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