Reference no: EM132473400

Cost Flow Methods

The following three identical units of Item P401C are purchased during April:

 Item               Beta          Units                  Cost

 Apr2           Purchase       1                          $100

Apr15         Purchase        1                          $120

 Apr20        Purchase        1 Unit                   $140

                                  Total 3 Units          $360

• Average cost per unit $120($360 ÷ 3 units)
• Assume that one unit is sold on April 27 for $300.

Question 1: 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 ProfitEnding Inventory

a. First-in, first-out (FIFO)$

b. Last-in, first-out (LIFO)$

c. Weighted average cost$