Question
A company sells 1,200 units during the first quarter of the year at a selling price of $25 per unit. In addition, the company has
A company sells 1,200 units during the first quarter of the year at a selling price of $25 per unit. In addition, the company has a beginning inventory of 600 units that were purchased at $10 per unit, and the following purchases and sales.
Date Units sold Units purchased Cost per unit
January 10 300 $11
January 25 450
February 7 400 $12
February 14 200
March 5 300 $14
March 27 550
If the company uses a perpetual inventory system and the LIFO method, then what is the company's gross profit?
| a. | $12,900 | |
| b. | $16,500 | |
| c. | $14,300 | |
| d. | $15,700 | |
| e. | $17,100 |
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Cost Accounting
Authors: Edward B. Deakin, Michael Maher
3rd Edition
0256069190, 978-0256069198
