On 31 December Year 1, Yellow and Co had 25 units of inventory in its warehouse, each of which had cost 100. During Year 2, further purchases were made as follows:

Month	Units purchased	Unit price
March	10	80
May	20	90
June	16	95
September	12	100
November	24	105

Annual sales totalled 104 units with total sales revenue of 10,000 for Year 2. Assume the sales all were made in December of Year 2.

A9 If the first-in, first-out (FIFO) method of inventory (stock) valuation is used, what is the gross profit for year 2?

1. 680
2. 1,080
3. 2,160
4. 1.534

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A10 If the last-in , first-out (LIFO) method of inventory (stock) valuation is used, what is the gross profit or loss for year 2?

1. 1,840 loss
2. 4,400 profit
3. 400 profit
4. 1,534 profit

A11 If the average cost method of inventory (stock) valuation is used, what is the gross profit or loss for year 2

1. 3,823 profit
2. 1,534 loss
3. 671 profit
4. 3,823 loss