Three identical units of Item S77 are purchased during October, as shown below.
|
|
Item S77 |
Units |
Cost |
|
Oct. 6 |
Purchase |
1 |
$ 88 |
|
19 |
Purchase |
1 |
85 |
|
24 |
Purchase |
1 |
82 |
|
24 |
Total |
3 |
$255 |
|
|
Average cost per unit |
|
$ 85 ($255/3 units) |
Assume that one unit is sold on October 26 for $100. Determine the gross profit for October and ending inventory on October 31 using the (a) first in, first out (FIFO); (b) last in, first out (LIFO); and (c) average cost methods.