Cost flow assumption based problem


Johnson Company had 500 units of "Tank" in its inventory at a cost of $4 each. It purchased, for $2,800, 300 more units of "Tank". Johnson then sold 400 units at a selling price of $10 each, resulting in a gross profit of $1,600. The cost flow assumption used by Johnson

a. is FIFO.

b. is LIFO.

c. is weighted average.

d. cannot be determined from the information given.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Cost flow assumption based problem
Reference No:- TGS095113

Expected delivery within 24 Hours