Three identical units of Item QBM are purchased during February, as shown below.
|
|
Item QBM |
Units |
Cost |
|
Feb. 8 |
Purchase |
1 |
$ 45 |
|
15 |
Purchase |
1 |
48 |
|
26 |
Purchase |
1 |
51 |
|
Total |
|
3 |
$144 |
|
Average cost per unit |
|
|
$ 48 ($144/3 units) |
Assume that one unit is sold on February 27 for $70. Determine the gross profit for February and ending inventory on February 28 using the (a) first in, first out (FIFO); (b) last in, first out (LIFO); and (c) average cost methods.