XYZ Inc Uses the Average Cost Formula in a Perpetual Inventory

Multiple Choice

XYZ Inc. uses the average cost formula in a perpetual inventory system.(Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.) If XYZ Inc. was using the FIFO cost formula instead of average, gross profit from the June 8 sale would be

A) higher.
B) lower.
C) the same.
D) cannot be determined.