hent-takeinprogress afalse Three identical units of merchandise were purchased d

Question

hent-takeinprogress afalse Three identical units of merchandise were purchased during July, as follows: Date July 3 10 24 Product T Purchase Purchase Purchase Total Units Cost $31.00 34.00 37.00 $102.00 Average cost per unit $34.00 Assume one unit sells on July 28 for $48.0o. s sold, and ending inventory on July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) average cost flow methods Gross Profit Determine the oross profit, cost of good Cost of Goods Sold Ending Inventory a) First-in, first-out b) Last-in, first-out c) Average

Explanation / Answer

Answer =   CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER FIFO METHOD PURCHASES COST OF GOODS SOLD CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit   Total Cost July 03 Purchases 1 $          31.00 $                  31.00 1 $         31.00 $         31.00 July 10 Purchases 1 $          34.00 $                  34.00 1 $         31.00 $         31.00 1 $         34.00 $         34.00 July 24 Purchases 1 $          37.00 $                  37.00 1 $         31.00 $         31.00 1 $         34.00 $         34.00 1 $         37.00 $         37.00 Available For sale 3 Sales   1 $             31.00 $           31.00 1 $         34.00 $         34.00 Closing Stock 1 $         37.00 $         37.00 Total 1 31 31 2 $         71.00 Unit Amoun COGS as per FIFO Method 1 $31.00 Closing Balance as per FIFO 2 71 CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER LIFO METHOD PURHASES COST OF GOODS SOLD CLOSING BALANCE Date Particulars Units (A) Rate Per unit Total Cost Units (A) Rate Per unit Total Cost Units (A) Rate Per unit   Total Cost July 03 Purchases 1 $          31.00 $                  31.00 1 $         31.00 $         31.00 July 10 Purchases 1 $          34.00 $                  34.00 1 $         31.00 $         31.00 1 $         34.00 $         34.00 July 24 Purchases 1 $          37.00 $                  37.00 1 $         31.00 $         31.00 1 $         34.00 $         34.00 1 $         37.00 $         37.00 Available For sale 3 Sales   1 $             37.00 $           37.00 1 $         31.00 $         31.00 Closing Stock 1 $         34.00 $         34.00 Total 1 37 37 2 $         65.00 Unit Amoun COGS as per LIFO Method 1 $          37.00 Closing Balance as per LIFO 2 $          65.00 CALCULATION OF THE UNIT COST AS PER AVERAGE COST METHOD Average cost perunit = $                34.00 Closing Stock = 2unit X $ 34 = $                68.00 FIFO LIFO Average Cost Sales $                48.00 $          48.00 $                  48.00 Cost OF Goods Sold $31.00 $37.00 $34.00 Gross Profit $17.00 $11.00 $14.00 Ending inventory $71.00 $65.00 $68.00

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