Question

PLEASE HELP!! ASAP!!

Cost Flow Methods The following three identical units of Item LO3V are purchased during April: Item Beta Units Cost Purchase 1 $70 April 2 April 15 April 20 Purchase 1 73 Purchase 1 76 Total 3 $219 Average cost per unit $73 ($219 + 3 units) Assume that one unit is sold on April 27 for $102. 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

Gross Profit Ending Inventory

a. First-in, first-out (FIFO) $32 $149

b. Last-in, first-out (LIFO) $26 $143

c. Weight average cost $29 $146

Working Note FIFO LIFO Weight Average Cost

Opening Inventory 1 0 0 0   

Purchases 2 $219 $219 $219

Ending Inventory 3 $149(219-70) $143(219-76) $146(219-73)  

Cost of Goods Sold( 1 + 2 - 3 ) $70 $76 $73

Sales $102 $102 $102

(-) Cost of Goods Sold $70 $76 $73

Gross Profit $32 $26 $29