A company just starting in business purchased three merchandise inventory items

Question

A company just starting in business purchased three merchandise inventory items at the following prices . First purchased$ 80; second purchase $95; the third $85. If a company sold two units for a total of $250 and used FIFO costing , the gross profit for that period would be what ? A company just starting in business purchased three merchandise inventory items at the following prices . First purchased$ 80; second purchase $95; the third $85. If a company sold two units for a total of $250 and used FIFO costing , the gross profit for that period would be what ?

Explanation / Answer

ANS;

Initial purchase price = 80 + 95 + 85 = 260
per unit avg = 260/3= 86.66$

2 units sale price = 240
price per unit =120$

profit = 33.33 $ per unit = 100$ profit total

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.