Cost Flow Methods. The following three identical units of Item PX2T are purchased during April: Units Cost April 2 April 15 April 20 Total Item Beta a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost Purchase Purchase Purchase 1 1 1 3 $220 221 Gross Profit 222 Average cost per unit. ($663 3 units) Assume that one unit is sold on April 27 for $278. 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. $663 $221 Ending Inventory $
Cost Flow Methods. The following three identical units of Item PX2T are purchased during April: Units Cost April 2 April 15 April 20 Total Item Beta a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost Purchase Purchase Purchase 1 1 1 3 $220 221 Gross Profit 222 Average cost per unit. ($663 3 units) Assume that one unit is sold on April 27 for $278. 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. $663 $221 Ending Inventory $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Cost Flow Methods
The following three identical units of Item PX2T are purchased during April:
Cost
April 2
April 15
April 20
Total
Item Beta
$220
221
222
$663
Average cost per unit
$221 ($663+ 3 units)
Assume that one unit is sold on April 27 for $278. 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.
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
Purchase
Purchase
Purchase
Units
$
$
1
Gross Profit
$
1
1
3
Ending Inventory
$
$
$
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