Traylor Corporation began the year with three items in beginning inventory, each costing $4. During the year Traylor purchased five more items at a cost of $5 each and two more items at a cost of $6.50 each. Traylor sold eight items for $9 each.
If Traylor uses LIFO, what would be Traylor’s gross profit for the year?
1. $42 2. $30 3. $35 4. $72