Study Appendix 16A. The inventory of the West Virginia Coal Company on June 30 shows 500 tons at $62 per ton. A physical inventory on July 31 shows a total of 600 tons on hand. Revenue from sales of coal for July totals $105,000. The following purchases were made during July: July 5, 1,000 tons at $64 per ton; July 15, 250 tons at $66 per ton; July 25, 300 tons at $69 per ton.
1. Compute the inventory value as of July 31, using (a) FIFO and (b) LIFO.
2. Compute the gross profit using each method.