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


Beta Units Cost April  2 Purchase 1 $100         

April 15 Purchase 1 $120          

April 20 Purchase 1 $140          

Total  3 $360          Average cost per unit    $120($360 ÷ 3 units)

Assume that one unit is sold on April 27 for $300.

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 $$ _______

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Solution: Gross Profit: FIFO... View the full answer


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