Assume That Three Identical Units of Merchandise Were Purchased During

Essay

Assume that three identical units of merchandise were purchased during October, as follows:
​ $\begin{array}{|l|r|l|c|r|}\hline & & & \text { Units } &{\text { Cost }} \\\hline \text { October } & 5 & \text { Purchase } & 1 & \$ 5 \\\hline & 12 & \text { Purchase } & 1 & 13 \\\hline & 28 & \text { Purchase } & 1 & 15 \\\hline \text { Total } & & & \underline{3} & \$ 33 \\\hline\end{array}$ ​
Assume one unit is sold on October 31 for $28. Determine cost of goods sold, gross profit, and ending inventory under the average cost method.