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store supplies inventory Question 2 2 pts A company just starting in business purchased three merchandise inventory items at
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Answer #1

Here FIFO is being used and so the 1st two purchases will be considered as sold.

Thus cost of goods sold = 65+78 = $143

Gross profit = sales – cost of goods sold

= 200 – 143

= $57

Thus the answer is the 2nd option i.e. $57

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