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A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $ purchase $105; Third purchase $95. If the company sold 2 units for a total of $300 and used FIFO costing, the gross profit period would be ○ $100. $90. ○ $105. O $115.

A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $ purchase $105; Third purchase $95. If the company sold 2 units for a total of $300 and used FIFO costing, the gross profit period would be ○ $100. $90. ○ $105. O $115.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $90; Second purchase $105; Third purchase $95. If the company sold 2 units for a total of $300 and used FIFO costing, the gross profit for the period would be ○ $100. $90. ○ $105. O $115.
Transcribed Image Text:A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $90; Second purchase $105; Third purchase $95. If the company sold 2 units for a total of $300 and used FIFO costing, the gross profit for the period would be ○ $100. $90. ○ $105. O $115.
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