The following three identical units of Item K113 are purchased during April: Item Beta Units Cost 1 1 1 3 April 2 April 15 April 20 Total Purchase Purchase Purchase a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost Average cost per unit ($504 + 3 units) Assume that one unit is sold on April 27 for $210. 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 $165 168 171 $504 $168 $ Ending Inventory $
The following three identical units of Item K113 are purchased during April: Item Beta Units Cost 1 1 1 3 April 2 April 15 April 20 Total Purchase Purchase Purchase a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost Average cost per unit ($504 + 3 units) Assume that one unit is sold on April 27 for $210. 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 $165 168 171 $504 $168 $ Ending Inventory $
Chapter4: Operating Activities: Sales And Cash Receipts
Section: Chapter Questions
Problem 1.3C
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![Cost Flow Methods
The following three identical units of Item K113 are purchased during April:
Cost
April 2
April 15
April 20
Total
Item Beta
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
Purchase
Purchase
Purchase
Units
1
1
1
3
$
$504
Average cost per unit
$168 ($504 + 3 units)
Assume that one unit is sold on April 27 for $210. 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
$165
168
171
Ending Inventory
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F402bf941-d3f7-4808-b2e4-e1665f3ab0a6%2F0ce4dc3f-1cf6-4e46-8951-75ddadd75e29%2F112rdjx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cost Flow Methods
The following three identical units of Item K113 are purchased during April:
Cost
April 2
April 15
April 20
Total
Item Beta
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
Purchase
Purchase
Purchase
Units
1
1
1
3
$
$504
Average cost per unit
$168 ($504 + 3 units)
Assume that one unit is sold on April 27 for $210. 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
$165
168
171
Ending Inventory
$
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