Question

Cost Flow Methods

The following three identical units of Item JC07 are purchased during April:

	Item Beta		Units		Cost
April   2	Purchase		1		$229
April  15	Purchase		1		230
April  20	Purchase		1		231
Total			3		$690
Average cost per unit					$230	($690 ÷ 3 units)

Assume that one unit is sold on April 27 for $313.

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 Profit	Ending Inventory
a. First-in, first-out (FIFO)	$	$
b. Last-in, first-out (LIFO)	$	$
c. Weighted average cost	$	$

Answer 1