Problem regarding cost flow assumption


Question: Milford 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." Milford 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 is? Be sure to show your work.

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Accounting Basics: Problem regarding cost flow assumption
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