A Company Just Starting in Business Purchased Three Merchandise Inventory

question 26

Multiple Choice

A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $64; Second purchase $76; Third purchase $68. If the company sold two units for a total of $200 and used FIFO costing, the gross profit for the period would be

• A) $56.
• B) $60.
• C) $62.
• D) $68.