Cost Flow Methods The following three identical units of Item B are purchased during June: Item B Purchase Purchase June 2 12 23 Total Purchase Units Cost $140 152 158 $450 $150 ($450 + 3 units) a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost 1 1 1 3 Average cost per unit Assume that one unit is sold on June 27 for $270. Determine the gross profit for June and ending inventory on June 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods. Ending Inventory 1000 Gross Profit $
Cost Flow Methods The following three identical units of Item B are purchased during June: Item B Purchase Purchase June 2 12 23 Total Purchase Units Cost $140 152 158 $450 $150 ($450 + 3 units) a. First-in, first-out (FIFO) b. Last-in, first-out (LIFO) c. Weighted average cost 1 1 1 3 Average cost per unit Assume that one unit is sold on June 27 for $270. Determine the gross profit for June and ending inventory on June 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods. Ending Inventory 1000 Gross Profit $
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 1PEB: The following three identical units of Item Beta are purchased during June: Assume that one unit is...
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![Cost Flow Methods
The following three identical units of Item B are purchased during June:
June 2
12
23
Total
Item B
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
Purchase
Purchase
Purchase
Units
$
$
1
1
1
3
Cost
$140
152
158
Average cost per unit
Assume that one unit is sold on June 27 for $270.
Determine the gross profit for June and ending inventory on June 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods.
Gross Profit
Ending Inventory
$450
$150 ($450+ 3 units)
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F492121c0-3843-4585-9c4f-58f7a1b7b43d%2Fe4491031-f8b4-4fbd-969d-4cb0564eb2b2%2Fn8x3t9p_processed.png&w=3840&q=75)
Transcribed Image Text:Cost Flow Methods
The following three identical units of Item B are purchased during June:
June 2
12
23
Total
Item B
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
Purchase
Purchase
Purchase
Units
$
$
1
1
1
3
Cost
$140
152
158
Average cost per unit
Assume that one unit is sold on June 27 for $270.
Determine the gross profit for June and ending inventory on June 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods.
Gross Profit
Ending Inventory
$450
$150 ($450+ 3 units)
$
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VIEWStep 2: A) calculation of gross profit and ending inventory cost as per The FIFO method -
VIEWStep 3: B) calculation of gross profit and ending inventory cost as per The LIFO method -
VIEWStep 4: c) calculation of gross profit and ending inventory cost as per The WEIGHTED AVERAGE COST method -
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