Three identical units of Item JC07 are purchased during August, as shown below.

Assume that one unit is sold on August 30 for $125.
Determine the gross profit for August and ending inventory on August 31 using the
(a) First-in, first-out (FIFO);
(b) Last-in, first-out (LIFO); and
(c) Average costmethods.

Transcribed Image Text:

Item JC07 Units Cost Aug. 7 13 Purchase $ 80 Purchase 84 25 Total Average cost per unit Purchase 88 $252 $ 84 ($252 + 3 units