One unit is sold on October 31 for $28. Using the table provided, determine gross profit under the FIFO method.
A)$28
B)$13
C)$15
D)$13

Question

One unit is sold on October 31 for $28. Using the table provided, determine gross profit under the FIFO method.​A)$28B)$13C)$15D)$13

Moriah Faith · Accepted Answer

Final Answer : B, Explanation :  Under the FIFO (First In, First Out) method, the first items purchased are the first ones sold. The cost of the first unit purchased is $5, so the cost of goods sold is $5. The selling price is $28, so the gross profit is $28 - $5 = $23.

One unit is sold on October 31 for $28. Using the table provided, determine gross profit under the FIFO method.
A)$28
B)$13
C)$15
D)$13

Definitions

Learning Objectives

Learning Objectives

Related questions

One unit is sold on October 31 for $28. Using the table provided, determine gross profit under the FIFO method.​A)$28B)$13C)$15D)$13

Definitions

Learning Objectives

Learning Objectives

Related questions

One unit is sold on October 31 for $28. Using the table provided, determine gross profit under the FIFO method.
A)$28
B)$13
C)$15
D)$13