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

question 66

Essay

Three identical units of merchandise were purchased during March,as shown:
$\begin{array}{|l|l|c|c|}\hline & {\text { SteelePlate }} & \text { Units } & \text { Cost } \\\hline \text { Mar. } 3 & \text { Purchase } & 1 & \$ 830 \\\hline 10 & \text { Purchase } & 1 & 840 \\\hline 19 & \text { Purchase } & \underline{1} & \underline{880} \\\hline \text { Total } & & \underline{3} & \underline{\$ 2.550} \\\hline\end{array}$
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 and b LIFO.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to verify that the ledger accounts are correctly balanced.

Ledger Balances

The current totals in ledger accounts, reflecting all transactions up to a given point in time.

Trial Balance

An accounting report that lists the balances of all ledgers accounts to verify that total debits equal total credits.

Ledger

A comprehensive collection of a company’s financial accounts, recording all transactions and financial activities.