1. Graham Company uses a periodic inventory system. Details for the inventory account for the month of January, 2020 are as follows:

Units Per unit price Total

Balance, 1/1/20 300 $5.00 $1500

Purchase, 1/15/20 150 5.30 795

Purchase, 1/28/20 150 5.50 825

An end of the month (1/31/21) inventory showed that 180 units were on hand. How many units did the company sell during January, 2021?

a. 120

b. 180

c. 300

d. 420

2. Holliday Company's inventory records show the following data:

Units Unit Cost

Inventory, January 1 5,000 $4.50

Purchases: June 18 4,500 4.00

November 8 3,000 3.50

A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for $6 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. Under the LIFO method, cost of goods sold is

a. $5,250.

b. $9,000.

c. $42,000.

d. $44,000.