A Company Just Starting in Business Purchased Three Merchandise Inventory

Multiple Choice

A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $65; second purchase $78; third purchase $68. If the company sold two units for a total of $200 and used periodic inventory system with FIFO costing, the gross profit for the period would be

A) $55.
B) $57.
C) $62.
D) $68.