Final answer:
To accurately calculate the gross profit using the FIFO inventory method, the cost of the oldest inventory needs to be known. Without this data, we cannot compute the gross profit. The examples provided relate to general revenue and cost concepts but do not offer the specific information required.
Step-by-step explanation:
To determine the gross profit using the periodic inventory system and the FIFO inventory method, we must calculate the cost of goods sold (COGS) and then subtract this figure from the total revenues. However, we have insufficient data in the question to provide an accurate calculation since the cost of the initial inventory and the cost of any additional purchases made during the period have not been provided.
Generally, the FIFO method assumes that the oldest inventory items are sold first. To calculate COGS under FIFO, we would take the cost of the oldest inventory and use this to account for the units sold. But without the actual cost details, we cannot proceed.
For example, if the 18 units sold were purchased at $6 each, the COGS would be 18 units × $6/unit = $108. The total revenues from selling 18 units at $14 each would be 18 units × $14/unit = $252. Subtracting COGS from total revenue, the gross profit would be $252 - $108 = $144.
The provided examples discuss total revenues, total costs, and how they relate to profit or loss for firms with different sale scenarios. However, without precise cost data for the units sold, we must have additional information to compute the gross profit accurately using FIFO under the periodic inventory system.