Use First in First Out (FIFO)

Required:

1. Total Cost of the Ending Inventory 2. Total Cost of Goods Sold 3. Gross Profit

Problem - Blue Company showed the following purchases and sales for the month of March: Units Unit cost March 1 Beginning 1,000 P 270 6 Purchase 3,000 250 14 Purchase 6,000 280 25 Purchase 4,000 210 March 9 Sale 2,000 31 Sale 8,000