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Question: 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 ⚫ first-in, first-out (FIFO); Gross Profit, Ending Inventory?

Question: 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 ⚫ first-in, first-out (FIFO); Gross Profit, Ending Inventory?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use the FIFO method

Question: 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 ⚫ first-in, first-out (FIFO); Gross Profit, Ending Inventory?
Transcribed Image Text:Question: 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 ⚫ first-in, first-out (FIFO); Gross Profit, Ending Inventory?
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