Three identical units of Item T4W are purchased during July, as shown below.
|
|
Item T4W |
Units |
Cost |
|
July 6 |
Purchase |
1 |
$115 |
|
19 |
Purchase |
1 |
118 |
|
24 |
Purchase |
1 |
121 |
|
|
Total |
3 |
$354 |
|
|
Average cost per unit |
|
$118 ($354/3 units) |
Assume that one unit is sold on July 28 for $150. Determine the gross profit for July and ending inventory on July 31 using the (a) first in, first out (FIFO); (b) last in, first out (LIFO); and (c) average cost methods.