The following data apply to the next two questions.

	Units	Price
Beginning Inventory	200	$1.20
First Purchase	400	$1.30
Second Purchase	250	$1.40
Sales	550	$2.00

11. Assuming a FIFO cost flow, the amount of gross margin reported on the income statement would be

a. $405.

b. $695.

c. $415.

d. None of the above.

12. Assuming a LIFO cost flow, the amount of ending inventory reported on the balance sheet would be

a. $240.

b. $415.

c. $130.

d. $370.

I do not know HOW please explain.