Example Exercise 7-1 2 Cost Flow Methods The three identical units of Item QBM are purchased during February, as shown below. Item QBM Units Cost Feb. 8 Purchase 1 $ 45 15 Purchase 1 48 26 Purchase 1 Total 3 $144 Average cost per unit $48 ($144 = 3 units) 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 51