2 Example Exercise 7-1 Cost Flow Methods The three identical units of Item QBM are purchased during February, as shown below Cost Units em QBM $ 45 48 1 Feb. 8 15 Purchase 26 Purchase Purchase 1 51 $144 $48 ($144 3 units) Total Average cost per unit Assume that one unit is sold on February 27 for $70 Determine the gross profit for February and ending inventory on February 28 using (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) average cost methods. 7-22