Answer:
Gross profit under LIFO = $40,570 - $26,340 = $14,230
Gross profit under FIFO = $40,570 - $24,520 = $16,050
Gross profit under average cost = $40,570 - $26,238.46 = $14,331.54
Gross profit under specific ID = $40,570 - $26,070 = $14,500
Explanation:
I divided the purchases and sales:
Mar. 1 Beginning 130 units $51.60 per unit
Mar. 5 Purchase 240 units $56.60 per unit
Mar. 18 Purchase 100 units $61.60 per unit
Mar. 25 Purchase 180 units $63.60 per unit
Totals 650 units, $37,900
Mar. 9 Sales 290 units $86.60 per unit
Mar. 29 Sales 160 units a $96.60 per unit
Totals 450 units. $40,570
COGS under LIFO:
(240 x $56.60) + (50 x $51.60) = $16,164
160 x $63.60 = $10,176
total = $26,340
COGS under FIFO:
(160 x $56.60) + (130 x $51.60) = $15,764
(110 x $56.60) + (50 x $61.60) = $8,756
total = $24,520
COGS under average cost:
($37,900 / 650) x (290 + 160) = $26,238.46
COGS under specific ID:
(80 x $51.60 ) + (210 x $56.60) = $16,014
(60 x $61.60) + (100 x $63.60) = $10,056
total = $26,070
