Question: Tier II Company uses a periodic inventory system. The details of the inventory account for January 2008 are as follows: Total Per Unit Unit price

Tier II Company uses a periodic inventory system. The details of the inventory account for January 2008 are as follows:

                                   Total            Per Unit        Unit price

Balance, 1/1/08             200            $5.00           $1,000

Purchase, 1/15/08         100             5.30              530

Purchase, 28.01.08        100             5.50             550

Month-end (31/1/08) inventory showed 120 units ready.


How many units did the company sell in January 2008 ?

If the company uses FIFO, what is the value of finished inventory?

If the company uses LIFO, what is the value of finished inventory?

If the company uses FIFO and sells units for $10 each, what would be the gross profit for that month?

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