Cost Flow Methods Three identical units of Item JC07 are purchased during July,

Question

Cost Flow Methods Three identical units of Item JC07 are purchased during July, as shown below July 9 uly 17 uly 26 Total Average cost per unit Item JC07 Purchase Purchase Purchase Units Cost $106 107 108 $321 $107 ($321 3 units) Assume that one unit is sold on July 31 for $131. Determine the gross profit for July and ending inventory on July 31 using the (a) first-in, first-out (FIFO); (b) last-in, first- out (LIFO); and (c) weighted average cost methods Gross Profit Ending Inventory a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost

Explanation / Answer

1 a FIFO: Gross Profit 25 =131-106 Ending inventory 215 =321-106 b LIFO: Gross Profit 23 =131-108 Ending inventory 213 =321-108 c Weighted average: Gross Profit 24 =131-107 Ending inventory 214 =321-107 2 a FIFO 495 =11*45 b LIFO 473 =11*43 c Average cost= 1631/37= 44.08 Inventory cost 485 =11*44.08

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---