PE 7-1A Cost flow methods

Three identical units of Item K113 are purchased during July, as shown below.
                         Item JC07       Units          Cost
July 9                 Purchase           1              $160
      17                Purchase           1                168
      26                Purchase           1                176
    Total                                       3              $504
Average cost per unit                                   $168 ($504 ÷ 3 units)

Assume that one unit is sold on July 31 for $225.
Determine the gross profit for July and ending inventory on July 31 using the
(a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) average cost methods.

Answer:
                                                 Gross Profit               Ending Inventory
                                                       July                               July 31
a. First-in, first-out (FIFO)      $65 ($225 – $160)           $344 ($168 + $176)
b. Last-in, first-out (LIFO)      $49 ($225 – $176)           $328 ($160 + $168)
c. Average cost                        $57 ($225 – $168)          $336 ($168 × 2)