Inventories There are three identical units of item JC07 are purchased during August, as shown below: Item JC07 Purchase Units Cost $ 80 84 88 7 August 13 25 Purchase Purchase $ 252 $ 84 ($252/3 units) Total Average cost per unit Assume that one unit is sold on august 30 for $125 Ploase determine the gross profit for august and ending inventory on august 31 uşing the (a) First In First Out ( FIFÓ) (b) Last In Ffirst o ut (LIFO) and (c) Average Cost methods
Inventories There are three identical units of item JC07 are purchased during August, as shown below: Item JC07 Purchase Units Cost $ 80 84 88 7 August 13 25 Purchase Purchase $ 252 $ 84 ($252/3 units) Total Average cost per unit Assume that one unit is sold on august 30 for $125 Ploase determine the gross profit for august and ending inventory on august 31 uşing the (a) First In First Out ( FIFÓ) (b) Last In Ffirst o ut (LIFO) and (c) Average Cost methods
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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![4. Inventories
There are three identical units of item JC07 are purchased during August, as shown below:
Cost
$ 80
Item JC07
Units
August
13
7
Purchase
1
Purchase
1
84
25
Purchase
1
3
$ 84 ($252/3 units)
88
Total
$ 252
Average cost per unit
Assume that one unit is sold on august 30 for $125
Please determine the gross profit for august and ending inventory on august 31 uşing the
(a) First In First Out ( FIFO) (b) Last In Ffirst o ut (LIFO) and (c) Average Cost methods](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5452e37a-8e3d-499f-81a9-7b0c4e845cd7%2F729b14d7-8598-4b09-98cf-55364658dbf5%2F7mvt12e_processed.png&w=3840&q=75)
Transcribed Image Text:4. Inventories
There are three identical units of item JC07 are purchased during August, as shown below:
Cost
$ 80
Item JC07
Units
August
13
7
Purchase
1
Purchase
1
84
25
Purchase
1
3
$ 84 ($252/3 units)
88
Total
$ 252
Average cost per unit
Assume that one unit is sold on august 30 for $125
Please determine the gross profit for august and ending inventory on august 31 uşing the
(a) First In First Out ( FIFO) (b) Last In Ffirst o ut (LIFO) and (c) Average Cost methods
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