Milford Company had 500 units of "Tank" in its inventory at a cost of $4 each.It purchased, for $2,800, 300 more units of "Tank".Milford then sold 400 units at a selling price of $10 each, resulting in a gross profit of $1,600.The cost flow assumption used by Johnson

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The given information does not provide any indication of specific identification or LIFO being used. Additionally, since the cost of inventory is a mix of units at $4 and $2.8 per unit, FIFO would not have resulted in a gross profit of $1,600. Therefore, the most logical cost flow assumption used by Milford Company is weighted average.

Milford Company Had 500 Units of "Tank" in Its Inventory