Suppose a Corse store in Kansas City, Missouri, ended May 2012 with 700,000 units of merchandise that cost an average of $6 each. Suppose the store then sold 650,000 units for $8,450,000 during June.
Further, assume the store made two large purchases during June as follows:
Jun 10 100,000 units @ $5.00 = $ 500,000
20 400,000 units @ $4.00 = $1,600,000

Requirements
1. At June 30, the store manager needs to know the store’s gross profit under both FIFO and LIFO. Supply this information.
2. What caused the FIFO and LIFO gross profit figures to differ?