Corinthian Inc., a new tile supply company, purchased three merchandise inventory items as follows: 1. first purchase $1,750 2. second purchase $1,630 3. third purchase $1,845 Using FIFO costing, calculate the gross profit for the period if the company sells two units for $4,800. O $425 O $1,845 O $1,420 O $1,325

Corinthian Inc., a new tile supply company, purchased three merchandise inventory items as follows: 1. first purchase $1,750 2. second purchase $1,630 3. third purchase $1,845 Using FIFO costing, calculate the gross profit for the period if the company sells two units for $4,800. O $425 O $1,845 O $1,420 O $1,325

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 4C

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Three identical units of merchandise were purchased during March, as shown: Steele Plate Units Cost Mar. 3 Purchase 1 $ 830 10 Purchase 1 840 19 Purchase 1 880 Total 3 $2,550 Assume that one unit is sold on March 23 for $1,125. What is the gross profit for March using FIFO? Oa. $1,670 Ob. $245 Oc. $1,720 Od. $295 Previous Next>
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