The following three identical units of Item Alpha are purchased during April: Item Alpha Units Cost Apr. Purchase $76 14 Purchase 1 81 28 Purchase 1 83 Total $240 $80 ($240 ÷ 3 units) Average cost per unit Assume that one unit is sold on April 30 for $132. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, and (c) weighted average cost methods. Gross Profit Ending Inventory a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) %$4 c. Weighted average cost
The following three identical units of Item Alpha are purchased during April: Item Alpha Units Cost Apr. Purchase $76 14 Purchase 1 81 28 Purchase 1 83 Total $240 $80 ($240 ÷ 3 units) Average cost per unit Assume that one unit is sold on April 30 for $132. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, and (c) weighted average cost methods. Gross Profit Ending Inventory a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) %$4 c. Weighted average cost
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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![Cost Flow Methods
The following three identical units of Item Alpha are purchased during April:
Item Alpha
Units
Cost
Apr.
Purchase
$76
14
Purchase
1
81
28
Purchase
1
83
Total
3
$240
$80 ($240 ÷ 3 units)
Average cost per unit
Assume that one unit is sold on April 30 for $132.
Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, firs
and (c) weighted average cost methods.
Gross Profit
Ending Inventory
$4
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4f447d79-7b26-48c3-bf50-eb21382ca0f8%2F6213d3f5-1d87-455a-af6b-e30b807d9e96%2Fcuytjnf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cost Flow Methods
The following three identical units of Item Alpha are purchased during April:
Item Alpha
Units
Cost
Apr.
Purchase
$76
14
Purchase
1
81
28
Purchase
1
83
Total
3
$240
$80 ($240 ÷ 3 units)
Average cost per unit
Assume that one unit is sold on April 30 for $132.
Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, firs
and (c) weighted average cost methods.
Gross Profit
Ending Inventory
$4
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
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