Determine the gross profit, cost of merchandise sold, and ending inventory on July 31 using the (a) first-in, first-out, (b) last-in, first-out, and (c) weighted average cost Mow methods. Gross Profit Cost of Merchandise Sold Ending Inventory a. First-in, first-out b. Last-in, first-out e Weighted average cost

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Three identical units of merchandise were purchased during July, as follows:
Units
Cost
July 3
Purchase
$23
10
Purchase
1.
26
24
Purchase
1.
29
Total
3.
$78
Average cost per unit
$26
Assume one unit sells on July 28 for $38.
Determine the gross profit, cost of merchandise sold, and ending inventory on July 31 using the (a) first-in, first-out, (b) last-in, first-out, and (c) weighted average cost
flow methods.
Gross Profit
Cost of Merchandise Sold
Ending Inventory
a. First-in, first-out
b. Last-in, first-out
C. Weighted average cost
Transcribed Image Text:Three identical units of merchandise were purchased during July, as follows: Units Cost July 3 Purchase $23 10 Purchase 1. 26 24 Purchase 1. 29 Total 3. $78 Average cost per unit $26 Assume one unit sells on July 28 for $38. Determine the gross profit, cost of merchandise sold, and ending inventory on July 31 using the (a) first-in, first-out, (b) last-in, first-out, and (c) weighted average cost flow methods. Gross Profit Cost of Merchandise Sold Ending Inventory a. First-in, first-out b. Last-in, first-out C. Weighted average cost
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