Three Identical Units of Merchandise Were Purchased During March, as Shown

question 60

Essay

Three identical units of merchandise were purchased during March, as shown:? $$\begin{array} { | c | l | c | r | } \hline &{ \textbf { Steele Plate } } & \textbf { Units } &{ \textbf { Cost } } \\\hline \text { Mar. 3 } & \text { Purchase } & 1 & \$ 830 \\\hline 10 & \text { Purchase } & 1 & 840 \\\hline 19 & \text { Purchase } & \underline { 1 } & \underline { 880 } \\\hline \text { Total } & & 3 & \textbf{\underline {\$ 2.550}} \\\hline\end{array}$$ ?Assume that one unit is sold on March 23 for $1,125. Determine the gross profit for March and ending inventory on March 31 using
(a) FIFO,
(b) LIFO, and
(c) average cost methods.

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Definitions:

Right of Survivorship

A legal principle in joint property ownership where, upon death, the deceased's share automatically transfers to the surviving owners.

Preliminary Order

An initial court order that sets conditions or arrangements in legal matters, often before a final decision is made.

Judicial Sale

A sale conducted under the supervision of a court, where the property is sold to satisfy a judgment.

Mortgagee

The lender or financial institution in a mortgage agreement, to whom the property is technically titled until the mortgage is fully paid off by the borrower.