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Assume that one unit is sold on April 27 for $300.

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 methods.

Sagot :

anthougo

The determination of the gross profit for April and the ending Inventory on April 30 is as follows:

                                               Gross Profit              Ending Inventory

(a) First-in, First-out (FIFO)    $200 ($300 - $100)   $260 ($120 + $140)

(b) Last-in, First-out (LIFO)    $160 ($300 - $140)   $220 ($120 + $100)

(c) Weighted Average cost   $180 ($300 - $120)   $240 ($120 x 2)

What are the Cost Flow Methods?

The cost flow methods are FIFO, LIFO, Specific Identification, and Weighted-Average Cost methods of costing ending inventory and cost of goods sold based on assumptions.

Question Completion:

The following three identical units of Item P401C are purchased during April:

Cost information:

Item   Units  Cost

April 2 Purchase  1 $100

15 Purchase  1   120

20 Purchase  1   140

Total   3        $360

Average cost per unit = $120 ($360 ÷ 3)

Learn more about the cost flow methods at https://brainly.com/question/5976808

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