1. Atkinson Company's beginning inventory on January 1, 2008 consisted of 2,100 units costing $1.50 per unit. Purchases during the year were as follows:

Quantity Total Cost

January 15 2,500 $3,750

March 25 4,000 8,000

June 10 3,000 7,500

August 5 1,500 4,500

November 20 3,200 9,600

14,200 $33,350

A physical count at year end indicated that there were 5,000 units on hand. All sales during the years were made at a selling price of $6 per unit.

Required:

1. Assuming the use of the first-in, first-out inventory costing method, determine gross profit:

$_____________