Assume That Three Identical Units of Merchandise Were Purchased During

question 189

Essay

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

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Definitions:

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle.