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Question
Three identical units of merchandise were purchased during July, as follows:
| | Units | Cost | |
| July 3 | Purchase | 1 | $ 35 |
| 10 | Purchase | 1 | 36 |
| 24 | Purchase | 1 | 37 |
| Total | 3 | $108 | |
| Average cost per unit | | $36 |
Assume one unit sells on July 28 for $45.
Determine the gross profit, cost of merchandise sold, and ending inventory on July 31 using the (a) first-in, first-out, (b) last-in, first-out, and (c) weighted average cost flow methods.
Answer
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