Three identical units of Item Alpha are purchased during February, as shown below.

Assume that one unit is sold on February 28 for $75.
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);
(c) Weighted average costmethods.

Transcribed Image Text:

ltem Alpha Purchase Purchase Purchase Cost $ 40 42 Units Feb. 17 26 Total Average cost per unit $126 $ 42 ($126 3 units)