How do determine the gross profit

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Three identical units of merchandise were purchased during July, as follows:

Date                    Product T   Units CostJ

July 3 Purchase        1            $18

July 10 Purchase       1              $ 21

July 24 Purchase        1            $24

Total                        3               $63

Average cost per unit$21

Assume one unit sells on July 28 for $31.

Problem 1: 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.

 

Reference no: EM132721211

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