6. Real South Products has $400,000 worth of inventory on hand on January 1. Between January and March 13, Real South purchased an additional $190,000 in inventory and sales of $530,000 had been made. On March 13, Real South's warehouse flooded and all but $15,000 worth of inventory was ruined. Real South has an average gross profit percentage of 25 percent. What would be the approximate value of the inventory destroyed in the flood? 1. $240,000 2. $275,000 3. $207,500 4. $177,500 7. Which of the following provides the best matching of revenues and expenses? 1. Specific Identification 2. FIFO 3. LIFO 4. Averaging 8. Milby Corporation purchased three hats to sell during the year. The first, purchased in February, cost $5. The second, purchased in April, cost $6. The third, purchased in July, cost $8. If Milby sells two hats during the year and uses the FIFO method, what would cost of goods sold be for the year? 1. $13 2. $19 3. $14 4. $11 t LA