9-10 Practice Problem Set - Week 8 Background: Your colleague is un-sure of the following correct answer and how to approach the problem. Provide a response for the following situation. Use the following information: July 1 Beginning inventory = 20 units @ $50; July 5 Purchases = 60 units @ $52; July 14 Sales 50 units @ $80; July 21 Purchases 30 units @ $56; July 31 Sales 28 units @ $85. What is gross profit on a periodic LIFO basis? A. $2,204. B. $2,212, C. $2,364. D. $4,016. E. $4,176. Based on the values seen previously, what is gross profit on a periodic FIFO basis? A. $2,204. B. $2,212. C. $2,364. D. $4,016. E. $4,176.