Question - Inventory information for Part # 311A of Bonds Corp. discloses the following information for the month of June.
June 1 Balance 450 units @ $1
June 10 Sold 300 units @ $2.40
June 11 Purchased 1,200 units @ $2
June 15 Sold 750 units @ $2.50
June 20 Purchased 750 units @ $3
June 27 Sold 450 units @ $2.70
Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO, and why is it stated that FIFO usually produces a higher gross profit than LIFO?