Tier II Company uses a periodic inventory system. The details of the inventory account for January 2008
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
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?
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill