The following three identical units of Item P401C are purchased during April: Apr. 2 Apr. 15 Apr. 20 Total Average cost per unit ($348 +÷ 3 units) Item Beta Units Cost Purchase 1 $114 Purchase 1 116 Purchase 1 118 3 $348 $116 Assume that one unit is sold on April 27 for $159. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-ou and (c) weighted average cost method. Gross Profit Ending Inventory a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost
The following three identical units of Item P401C are purchased during April: Apr. 2 Apr. 15 Apr. 20 Total Average cost per unit ($348 +÷ 3 units) Item Beta Units Cost Purchase 1 $114 Purchase 1 116 Purchase 1 118 3 $348 $116 Assume that one unit is sold on April 27 for $159. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-ou and (c) weighted average cost method. Gross Profit Ending Inventory a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) 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 P401C are purchased during April:
Apr. 2
Apr. 15
Apr. 20
Total
Average cost per unit ($348 ÷ 3 units)
Item Beta Units
Cost
Purchase
1
$114
Purchase
1
116
Purchase
1
118
3
$348
$116
Assume that one unit is sold on April 27 for $159.
Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-ou
and (c) weighted average cost method.
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
Gross Profit
Ending Inventory
$
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff73370c4-be25-4fac-9cca-988ea7e46ad7%2F6debc5e6-33d3-46cd-97b2-38b1b451ee84%2F3dzj2xg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cost flow methods
The following three identical units of Item P401C are purchased during April:
Apr. 2
Apr. 15
Apr. 20
Total
Average cost per unit ($348 ÷ 3 units)
Item Beta Units
Cost
Purchase
1
$114
Purchase
1
116
Purchase
1
118
3
$348
$116
Assume that one unit is sold on April 27 for $159.
Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-ou
and (c) weighted average cost method.
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
Gross Profit
Ending Inventory
$
$
$
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