The following three identical units of Item K113 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 $276 279 Gross Profit 282 Average cost per unit ($837 + 3 units) Assume that one unit is sold on April 27 for $374. 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. $837 $279 Ending Inventory

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Cost Flow Methods
The following three identical units of Item K113 are purchased during April:
Item Beta
Units Cost
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
1
1
1
3
Average cost per unit
($837+ 3 units)
Assume that one unit is sold on April 27 for $374. 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.
$276
279
282
$837
$279
Gross Profit
Ending Inventory
Transcribed Image Text:Cost Flow Methods The following three identical units of Item K113 are purchased during April: Item Beta Units Cost 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 1 1 1 3 Average cost per unit ($837+ 3 units) Assume that one unit is sold on April 27 for $374. 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. $276 279 282 $837 $279 Gross Profit Ending Inventory
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