Three Identical Units of Merchandise Were Purchased During July, as Follows

question 199

Essay

Three identical units of merchandise were purchased during July, as follows: Assume one unit sells on July 28 for $45.
Determine the gross profit, cost of merchandise sold, and ending inventory on July 31 using a) first-in, first-out, b) last-in, first-out, and c) average cost flow methods.

---

Definitions:

Supply Chain Function

The activities and operations undertaken by entities within a supply chain, from procurement of raw materials to delivery of finished goods.

Shipping Company

A business that provides services for transporting goods by sea, air, or land, from one location to another.

Flow Management

The process of overseeing and regulating the movement of goods, services, and information through the supply chain.

Pricing Department

A division within a company responsible for setting prices for products or services based on market research, cost analysis, and competitive strategies.