Suppose a Johnson store in Ottawa, Ontario, ended November 2020 with 800,000 units of merchandise that cost an average of \(\$ 8\) each. Suppose the store then sold 600,000 units for \(\$ 5.0\) million during December. Further, assume the store made two large purchases during December as follows:

1. At December 31, the store manager needs to know the store's gross profit under both FIFO and weighted-average cost. Supply this information. Johnson uses the periodic inventory system.
2. What caused the FIFO and weighted-average cost gross profit figures to differ?

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December 6 26 100,000 units @ $7 - $700,000 400,000 units @ 6 = 2,400,000