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Use the Following Information for Questions

Question 86

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Use the following information for questions.
A company just starting its business made the following four inventory purchases in June: 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. 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.

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