Use the Following Information for Questions

question 55

Multiple Choice

Use the following information for questions
A company just starting its business made the following four inventory purchases in June:
On June 25, the company made its first sale when a local customer purchased 500 units for $3,500.The company uses a perpetual inventory system.
-The inventory cost formula that results in the highest gross profit for June is

• A)FIFO.
• B)average.
• C)Gross profit is the same under both cost formulas.
• D)not determinable.