Assume That Three Identical Units of Merchandise Were Purchased During

Essay

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