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

Question

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

Quizplus · Accepted Answer

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

Assume That Three Identical Units of Merchandise Are Purchased During