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Question
Three identical units of merchandise were purchased during March, as shown:
| Units | Cost | ||
| Mar. 3 | Purchase | 1 | $ 830 |
| 10 | Purchase | 1 | 840 |
| 19 | Purchase | 1 | 880 |
| Total | 3 | $2,550 |
Assume that one unit is sold on March 23 for $1,125. Determine the gross profit for March and ending inventory on March 31 using (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
Answer
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