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Question
Assume that three identical units of merchandise were purchased during October, as follows:
| Units | Cost | ||
| Oct. 5 | Purchase | 1 | $ 5 |
| 12 | Purchase | 1 | 13 |
| 28 | Purchase | 1 | 15 |
| Total | 3 | $33 |
Assume one unit is sold on October 31 for $28. Determine cost of merchandise sold, gross profit, and ending inventory under the weighted average cost method.
Answer
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