Purchased three merchandise inventory items


A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Second purchase $95; Third purchase $85. If the company sold two units for a total of $240 and used FIFO costing, the gross profit for the period would be

A. $65.

B. $60.

C. $75.

D. $50.

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Accounting Basics: Purchased three merchandise inventory items
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