Cost Flow Methods

The following three identical units of Item P401C are purchased during April:

Item Beta Units Cost April  2Purchase 1 $100          15Purchase 1 120          20Purchase 1 140          Total  3 $360          Average cost per unit    $120($360 ÷ 3 units)

Assume that one unit is sold on April 27 for $300.

Determine the gross profit for April and ending inventory on April 30 using the (a) ; (b) ; and (c) .

Gross ProfitEnding Inventory

a. First-in, first-out (FIFO)$$b. Last-in, first-out (LIFO)$$c. Weighted average cost$$