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Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory, purchases, and sales of item A are given in
Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory, purchases, and sales of item A are given in the following table for the first six months of the current year. The company uses a perpetual inventory system:
Purchases | Sales | ||||||||||||
Date | Number of Units | Unit Cost | Number of Units | Sales Price | |||||||||
January 1 (beginning inventory) | 580 | $ | 4.10 | ||||||||||
January 24 | 380 | $ | 5.60 | ||||||||||
February 8 | 680 | $ | 4.20 | ||||||||||
March 16 | 380 | $ | 5.60 | ||||||||||
June 11 | 680 | $ | 4.20 | ||||||||||
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2. Compute the gross profit for the first six months of the current year by using the FIFO costing method. (Do not round intermediate calculations and round the final answer to 2 decimal places.)
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