A company just starting in business purchased three merchandise inventory items at the following prices: first purchase, $100; second purchase, $120; third purchase, $125. If the company sold two units for a total of $400 and used FIFO, the gross profit for the period would be
A) $220.
B) $180.
C) $245.
D) $155.

Question

Quizplus · Accepted Answer

The Answer of A company just starting in business purchased three merchandise inventory items at the following prices: first purchase, $100; second purchase, $120; third purchase, $125. If the company sold two units for a total of $400 and used FIFO, the gross profit for the period would be
A) $220.
B) $180.
C) $245.
D) $155.

A Company Just Starting in Business Purchased Three Merchandise Inventory