The following three identical units of Item Beta are purchased during June: Item Beta Units Cost $ 50 June Purchase Purchase 12 60 Purchase 23 70 Total $180 3 $ 60 ($180 + 3 units) Average cost per unit Assume that one unit is sold on June 27 for $110. Determine the gross profit for June and ending inventory on June 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods.
The following three identical units of Item Beta are purchased during June: Item Beta Units Cost $ 50 June Purchase Purchase 12 60 Purchase 23 70 Total $180 3 $ 60 ($180 + 3 units) Average cost per unit Assume that one unit is sold on June 27 for $110. Determine the gross profit for June and ending inventory on June 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted 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 1PEB: The following three identical units of Item Beta are purchased during June: Assume that one unit is...
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![The following three identical units of Item Beta are purchased during June:
Item Beta
Units
Cost
$ 50
June
Purchase
Purchase
12
60
Purchase
23
70
Total
$180
3
$ 60 ($180 + 3 units)
Average cost per unit
Assume that one unit is sold on June 27 for $110.
Determine the gross profit for June and ending inventory on June 30 using the
(a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F63d38f1d-d551-4153-bc2e-e3603469104b%2F263cbad2-e2a6-4db6-a92c-228517c3b5d1%2Fxn4eu7g.jpeg&w=3840&q=75)
Transcribed Image Text:The following three identical units of Item Beta are purchased during June:
Item Beta
Units
Cost
$ 50
June
Purchase
Purchase
12
60
Purchase
23
70
Total
$180
3
$ 60 ($180 + 3 units)
Average cost per unit
Assume that one unit is sold on June 27 for $110.
Determine the gross profit for June and ending inventory on June 30 using the
(a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods.
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