Assume that three identical units of merchandise were purchased during October, as follows: $$\begin{array} { | l | l | l | l | l | }
\hline & & & \text { Units } & \text { Cost } \
\hline \text { October } & 5 & \text { Purchase } & 1 & \$ 5 \
\hline & 12 & \text { Purchase } & 1 & 13 \
\hline & 28 & \text { Purchase } & 1 & 15 \
\hline \text { Total } & & & 3 & \$ 33 \
\hline
\end{array}$$ Assume one unit is sold on October 31 for $28. Determine cost of merchandise sold, gross profit, and ending inventory under the LIFO method.

Question

Assume that three identical units of merchandise were purchased during October, as follows: $$\begin{array} { | l | l | l | l | l | } 
\hline & & & \text { Units } & \text { Cost } \
\hline \text { October } & 5 & \text { Purchase } & 1 & \$ 5 \
\hline & 12 & \text { Purchase } & 1 & 13 \
\hline & 28 & \text { Purchase } & 1 & 15 \
\hline \text { Total } & & & 3 & \$ 33 \
\hline
\end{array}$$ Assume one unit is sold on October 31 for $28. Determine cost of merchandise sold, gross profit, and ending inventory under the LIFO method.

Quizplus · Accepted Answer

The Answer of Assume that three identical units of merchandise were purchased during October, as follows: $$\begin{array} { | l | l | l | l | l | } 
\hline & & & \text { Units } & \text { Cost } \
\hline \text { October } & 5 & \text { Purchase } & 1 & \$ 5 \
\hline & 12 & \text { Purchase } & 1 & 13 \
\hline & 28 & \text { Purchase } & 1 & 15 \
\hline \text { Total } & & & 3 & \$ 33 \
\hline
\end{array}$$ Assume one unit is sold on October 31 for $28. Determine cost of merchandise sold, gross profit, and ending inventory under the LIFO method.

Assume That Three Identical Units of Merchandise Were Purchased During