Determine the gross profit for April and ending inventory on April 30 using the

Question

Determine the gross profit for April and ending inventory on April 30 using the
a) fist-in, first-out
b) last-in, first-out
c) weighted average cost method

me DocuSign Business Partner Contacts Learning Resources &To. SSCC- Teaml6 Home @ Dashboards Welcome to Sales and Ser... IVR Workdlow Tool Personal Lines Policy View Show Me HowCalculator eBook Cost Flow Methods The following three identical units of Item P401C are purchased during April: Item Beta Units Cost Purchase $100 Purchase1120 140 3 $360 $120 April 2 15 20 Total Average cost per unit Purchase ($360 ÷ 3 units) Assume that one unit is sold on April 27 for $300. Determine the gross profit for April and ending inventory t for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) ast-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

Explanation / Answer

It is given that one unit is sold on April 27, for $300. So, the sales value of units sold will be $300.

Total cost of units is given as $360.

200

[ 300 - 100 ]

260

[ 360 - 100 ]

160

[ 300 - 140 ]

220

[ 360 - 140 ]

180

[ 300 - 120 ]

240

[ 360 - 120 ]

Gross profit ($) Ending inventory ($) a. First-in, first out ( FIFO )

200

[ 300 - 100 ]

260

[ 360 - 100 ]

b. Last-in, first out ( LIFO )

160

[ 300 - 140 ]

220

[ 360 - 140 ]

c. Weighted average cost

180

[ 300 - 120 ]

240

[ 360 - 120 ]

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