Purchases

Quantity

Price

Qty x Price

Purchase 1

100

$10

$1,000

Purchase 2

200

$11

$2,200

Purchase 3

100

$12

$1,200

Purchase 4

300

$14

$4,200

TOTAL

700

$8,600

Sales

Quantity

Sale 1

150

Using the above information, which inventory valuation method results in the largest gross profit? Assume that the inventory balance before the first purchase was zero

Select one:

a.Average cost

b.Periodic Inventory

c.FIFO

d.None of the available choices