Three identical units of merchandise were purchased during July, as follows: Date Product T Units Cost July 3 Purchase 1 $19.00 10 Purchase 1 22.00 24 Purchase 1 25.00 Total 3 $66.00 Average cost per unit $22.00 Assume one unit sells on July 28 for $33.00. Determine the gross profit, cost of goods sold, and ending inventory on July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) average cost flow methods. Gross Profit Cost of Goods Sold Ending Inventory a) First-in, first-out $ $ $ b) Last-in, first-out $ $ $ c) Average $ $ $
Three identical units of merchandise were purchased during July, as follows: Date Product T Units Cost July 3 Purchase 1 $19.00 10 Purchase 1 22.00 24 Purchase 1 25.00 Total 3 $66.00 Average cost per unit $22.00 Assume one unit sells on July 28 for $33.00. Determine the gross profit, cost of goods sold, and ending inventory on July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) average cost flow methods. Gross Profit Cost of Goods Sold Ending Inventory a) First-in, first-out $ $ $ b) Last-in, first-out $ $ $ c) Average $ $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Three identical units of merchandise were purchased during July, as follows:
| Date | Product T | Units | Cost |
| July 3 | Purchase | 1 | $19.00 |
| 10 | Purchase | 1 | 22.00 |
| 24 | Purchase | 1 | 25.00 |
| Total | 3 | $66.00 | |
| Average cost | per unit | $22.00 |
Assume one unit sells on July 28 for $33.00.
Determine the gross profit, cost of goods sold, and ending inventory on July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) average cost flow methods.
| Gross Profit | Cost of Goods Sold | Ending Inventory | |
| a) First-in, first-out | $ | $ | $ |
| b) Last-in, first-out | $ | $ | $ |
| c) Average | $ | $ | $ |
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