The following three identical units of Item P401C are purchased during April: Item Beta Units Cost
April 2 Purchase 1 $100
15 Purchase 1 120
20 Purchase 1 140
Total 3 $360
Average cost per unit $120 ($360 ÷ 3 units)
Assume that one unit is sold on April 27 for $300.
Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost method.
Gross Profit Ending Inventory
a. First-in, first-out (FIFO) $ $
b. Last-in, first-out (LIFO) $ $
c. Weighted average cost $

a. Gross Profit = $200 and Ending Inventory = $280

b.  Gross Profit = $160 and Ending Inventory = $220

c. Gross Profit = $180 and Ending Inventory = $240

Explanation:

FIFO

FIFO method assumes that the first goods received by the business will be the first ones to be delivered to the final customer.

Gross Profit

Sales ( 1 × $300)                       $300

Less Cost of Sales ( 1 × $100) ($100)

Gross Profit                              $200

Inventory = Units left × earliest price

                = 2 × $140

                = $280

LIFO

LIFO method assumes that the last goods purchased are the first ones to be issued to the final customer.

Gross Profit

Sales ( 1 × $300)                       $300

Less Cost of Sales ( 1 × $140) ($140)

Gross Profit                              $160

Inventory : (1 × $100 + 1 × $120) = $220

Weighted Average Cost (AVCO)

The average cost of goods held is recalculated each time a new delivery of goods is received . Issues are then priced at this weighted average cost.

Gross Profit

Sales ( 1 × $300)                       $300

Less Cost of Sales ( 1 × $120) ($120)

Gross Profit                               $180

Inventory = Units left × average price

                = 2 × $120

                = $240

answer; manager working long hours; plz check i believe this is correct good luck;