The following three identical units of Item 3C07 are purchased during April: Item Beta Units Cost Purchase 1 Purchase Purchase April 2 April 15 April 20 Total $76 80 84 $240 Average cost per unit $80 ($240 + 3 units) Assume that one unit is sold on April 27 for $106. 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 1 1 3 Gross Profit Ending Inventory

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Cost Flow Methods
The following three identical units of Item JC07 are purchased during April:
Item Beta. Units
Cost
April 2
April 15
April 20
Total
Purchase
Purchase
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
Purchase
1
1
1
3
$76
80
84
$240
$80
Average cost per unit
($240 + 3 units)
Assume that one unit is sold on April 27 for $106. 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.
Gross Profit Ending Inventory
Transcribed Image Text:Cost Flow Methods The following three identical units of Item JC07 are purchased during April: Item Beta. Units Cost April 2 April 15 April 20 Total Purchase Purchase a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost Purchase 1 1 1 3 $76 80 84 $240 $80 Average cost per unit ($240 + 3 units) Assume that one unit is sold on April 27 for $106. 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. Gross Profit Ending Inventory
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