The following three identical units of item ABC are purchased during July: July 9 16 27 Total Average cost per unit Item ABC Purchase Purchase Purchase a. Units 1 1 1 Gross profit = $32; ending inventory = $84 = $94 O b. Gross profit = $32; ending inventory O c. Gross profit = $22; ending inventory = $84 O d. Gross profit = $12; ending inventory = $74 Cost $32 42 52 $126 Assume that one unit is sold on July 30 for $64. Determine the gross profit for July and ending inventory on July 31 using the first-in, first out (FIFO) method. $42 ($1263 units)

Assume that one unit is sold on July 30 for $64. Determine the gross profit for July and ending inventory on July 31 using the first-in, first out (FIFO) method. a. Gross profit =$32; ending inventory =$84 b. Gross profit =$32; ending inventory =$94 c. Gross profit =$22; ending inventory =$84 d. Gross profit =$12; ending inventory =$74