A company just starting in business purchased three merchandise inventory items at the following prices. March 2, $150; March 7, $160; and March 15, $180. If the company sold two units for $250 each on March 10 and March 20, and used the FIFO cost formula in a perpetual inventory system, the gross profit for March would be
A) $200.
B) $190.
C) $180.
D) $150.

Question

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The Answer of A company just starting in business purchased three merchandise inventory items at the following prices. March 2, $150; March 7, $160; and March 15, $180. If the company sold two units for $250 each on March 10 and March 20, and used the FIFO cost formula in a perpetual inventory system, the gross profit for March would be
A) $200.
B) $190.
C) $180.
D) $150.

A Company Just Starting in Business Purchased Three Merchandise Inventory