The Gross profit is $178, in the ending inventory using the periodic inventory.
What is profit?
To determine how much profit has been generated in a transaction, apply the profit formula. A product is said to have made a profit when its selling price is higher than its cost. The profit formula is useful for figuring out how much money is made when a certain product is sold, often in a business, or for figuring out how much money is made in any financial transaction. In situations where the selling price exceeds the cost price, profit can be determined. The following is the formula to calculate the profit:
Selling price minus cost price is referred to as profit (C.P.)
the last-in, first-out principle. According to LIFO, expenses are deducted starting with the costs of the most recent purchases of goods.
The most recent purchases, which were made on January 18 and January 12, resulted in 16 units.
Cost of goods sold = (7*6) + (9*4) = 42 + 36 = $78
Sales = 16*16 = $256
Gross profit = Sales - Cost of goods sold = 256 - 78 = $178
Hence, the Gross profit is $178
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