Three identical units of Item S77 are purchased during October, as shown below.

Assume that one unit is sold on October 26 for $100.
Determine the gross profit for October and ending inventory on October 31 using the
(a) First-in, first-out (FIFO);
(b) Last-in, first-out (LIFO);
(c) Average costmethods.

Transcribed Image Text:

Item S77 Units Cost Oct. 6 19 24 Total Purchase Purchase Purchase S 88 85 82 3 255 Average cost per unit 85 ($255/3 units)