Assume a company purchase a unit on June 5 for $10, on June 10 for $9 and on June 15 for $20. What is the gross profit when they sell one unit on June 25 for $25 and the company use First-In, First-Out?

Select one:

a. $5

b. $12

c. $16

d. $15

Assume a company purchase a unit on June 5 for $10, on June 10 for $9 and on June 15 for $20. What is the inventory balance when they sell one unit on June 25 for $25 and the company use First-In, First-Out?

Select one:

a. $29

b. $10

c. $39

d. $19

Assume a company purchase a unit on June 5 for $10, on June 10 for $9 and on June 15 for $20. What is the cost of goods sold when they sell one unit on June 25 for $25 and the company use First-In, First-Out?

Select one:

a. $10

b. $9

c. $20

d. $25

What does FIFO means?

Select one:

a. First-out, First-in

b. First in, first out

c. First units, first out

How much inventory should a merchandising business keep?

Select one:

a. enough to meet its customers' needs.

b. as much as possible to prepare for unexpected demand.

c. as litttle as possible to avoid storage fees