A company just starting in business purchased three inventory items at the following prices: first purchase $110; second purchase $115; third purchase $120. If the company sold two units for a total of $300 and used FIFO costing, the gross profit for the period would be:
A) $65.
B) $60.
C) $75.
D) $70.

Question

Quizplus · Accepted Answer

Gross profit = $300 - (110 + 115) = $75.

A Company Just Starting in Business Purchased Three Inventory Items