Final answer:
The gross profit using the weighted average cost flow method is d.$7, calculated by subtracting the average cost of $7 from the selling price of $14.
Step-by-step explanation:
To determine the gross profit using the weighted average cost flow method, calculate the average cost of the inventory purchased before the sale. In this scenario, there are three purchases with costs of $6, $7, and $8, creating a total cost of $21 for 3 units. The average cost per item is $21 / 3 = $7. Since one item sold for $14, the gross profit for this item is the selling price minus the weighted average cost, which is $14 - $7 = $7.
Therefore, the gross profit, using the weighted average cost flow method, is $7.
- Total inventory cost: $6 + $7 + $8 = $21
- Average cost per unit: $21 / 3 units = $7 per unit
- Gross Profit: $14 (selling price) - $7 (average cost) = $7
SUMUP all the final answer as points at last:
- Total inventory cost: $21
- Average cost per unit: $7
- Gross Profit: $7