The inventory of the Roseburg Sand and Gravel Company on June 30 shows 1,000 tons at $9 per ton. A physical inventory on July 31 shows a total of 1,200 tons on hand. Revenue from sales of gravel for July totals $102,000. The following purchases were made during July:
July 8 .......... 5,000 tons @ $10 per ton
July 13 ......... 1,000 tons @ $11 per ton
July 22 ......... 800 tons @ $12 per ton
1. Compute the inventory cost as of July 31 using (a) LIFO, and (b) FIFO.
2. Compute the gross profit using each method.