Question

Jun. 1 Beginning merchandise inventory 12 Purchase 20 Sale 24 Purchase 29 Sale 17 units @ 5 units @ 14 units @ 11 units @ 13 units @ $ $ $ $ $ 15 each 19 each 37 each 23 each 37 each

Answer 1

FIFO method states that goods purchased first will be sold first
LIFO method states that goods purchased later will be sold first
Average cost method takes into account average cost for the purpose of calculation
Units in Ending Inventory = 6 units
	FIFO	LIFO	Weighted Average
Beginning Inventory	255	255	255
Net Purchases	348	348	348
Cost of goods available for sale	603	603	603
Less: Ending Inventory	138	90	110
Cost of Goods Sold	465	513	493
Weighted average cost per unit = 603/33 = 18.27 per unit
	FIFO	LIFO	Weighted Average
Sales Revenue	999	999	999
COGS	465	513	493
Gross Profit	534	486	506