Cost Flow Methods Three identical units of Item PX2T are purchased during July, as shown below. Item PX2T Units Cost July 9 Purchase 1 $224 July 17 Purchase 1 225 July 26 Purchase 1 226 Total 3 $675 Average cost per unit $225 ($675 / 3 units) Assume that one unit is sold on July 31 for $275. Determine the gross profit for July and ending inventory on July 31 using the last- in, first-out (LIFO); Gross Profit, Ending Inventory?
Cost Flow Methods Three identical units of Item PX2T are purchased during July, as shown below. Item PX2T Units Cost July 9 Purchase 1 $224 July 17 Purchase 1 225 July 26 Purchase 1 226 Total 3 $675 Average cost per unit $225 ($675 / 3 units) Assume that one unit is sold on July 31 for $275. Determine the gross profit for July and ending inventory on July 31 using the last- in, first-out (LIFO); Gross Profit, Ending Inventory?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Using the LIFO METHOD
Transcribed Image Text:Cost Flow Methods Three identical
units of Item PX2T are purchased
during July, as shown below. Item
PX2T Units Cost July 9 Purchase 1
$224 July 17 Purchase 1 225 July 26
Purchase 1 226 Total 3 $675
Average cost per unit $225 ($675 /
3 units) Assume that one unit is
sold on July 31 for $275. Determine
the gross profit for July and ending
inventory on July 31 using the last-
in, first-out (LIFO);
Gross Profit, Ending Inventory?
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