Reference no: EM132826597

Problem 1: Which of the following is used to calculate the gross profit?

option 1: Indirect expenses

option 2: Fixed expenses

option 3: Revenue

option 4: FIFO

Problem 2: Products in an electronic store consist of the following: 20 TVs delivered on January 10th at a cost of $100 each and 30 TVs delivered on February 2nd at a cost of $110. They are all the same model. Using the FIFO inventory method, what would the remaining value of inventory be if 15 TV's were sold on February 28th?

option 1: $3,650

option 2: $3,800

option 3: $5,300

option 4: $3,710