Sherita H.

asked • 12/01/19

How do I calculate the answers, I am at a complete loss of how to determine

Cost Flow Methods

Three identical units of Item PX2T are purchased during July, as shown below.

 Item PX2T Units Cost  
July 9 Purchase   1   $208  
July 17 Purchase   1   209  
July 26 Purchase   1   210  
Total     3   $627  
Average cost per unit         $209 ($627 ÷ 3 units)

Assume that one unit is sold on July 31 for $270. 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 ProfitEnding Inventory
a. First-in, first-out (FIFO) $ $
b. Last-in, first-out (LIFO) $ $
c. Weighted average cost $ $

1 Expert Answer


Scott M. answered • 12/02/19

CPA with a Masters in Accounting and Accounting Tutor

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