Assume That Three Identical Units of Merchandise Are Purchased During

question 160

Essay

Assume that three identical units of merchandise are purchased during October, as follows:

$\begin{array}{|l|l|l|l|l|}\hline & & & \text { Units } & \text { Cost } \\\hline \text { October } & 5 & \text { Purchase } & 1 & \$ 5 \\\hline & 12 & \text { Purchase } & 1 & 13 \\\hline & \text { Purchase } & \underline{1} & \underline{15} \\\hline \text { Total } & 28 & & \underline{3} & \underline{33} \\\hline\end{array}$
Assume one unit is sold on October 31 for $28. Determine Cost of Merchandise Sold, Gross Profit, and Ending Inventory under the Average Cost method.

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