Tier II Company uses a periodic inventory system. Details for the inventory account for the month of January, 2008 are as follows:

Units Per unit price Total

Balance, 1/1/08 200 $5.00 $1,000

Purchase, 1/15/08 100 5.30 530

Purchase, 1/28/08 100 5.50 550

An end of the month (1/31/08) inventory showed that 120 units were on hand.

16. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

a. $1,376

b. $1,424

c. $2,800

d. $3,000