The following three identical units of Item PX2T are purchased during April: Item Beta Units Cost 1 1 1 3 April 2 April 15 April 20 Total Purchase Purchase Purchase $253 255 257 $765 $255 Average cost per unit ($765+3 units) Assume that one unit is sold on April 27 for $314. Determine the gross profit for April and ending inventory on Apr 30 using the (a) first-in, first-out (PIPO); last-in, first-out (LIFO); and (c) weighted average cost method. Gross Profit Ending Inventory
The following three identical units of Item PX2T are purchased during April: Item Beta Units Cost 1 1 1 3 April 2 April 15 April 20 Total Purchase Purchase Purchase $253 255 257 $765 $255 Average cost per unit ($765+3 units) Assume that one unit is sold on April 27 for $314. Determine the gross profit for April and ending inventory on Apr 30 using the (a) first-in, first-out (PIPO); last-in, first-out (LIFO); and (c) weighted average cost method. Gross Profit Ending Inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cost Flow Methods
The following three identical units of Item PX2T are purchased during April:
Item Beta
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
Units
1
1
$
1
3
Average cost per unit
($765+3 units)
Assume that one unit is sold on April 27 for $314. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (PIPO); (b)
last-in, first-out (LIFO); and (c) weighted average cost method.
Gross Profit
X
X
$253
255
257
X
$765
$255
Ending Inventory
S
X
X
X
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