Elliot Co. opened its doors for business on January 1st of 2022. Below is a chart outlining the purchases and sales of inventory for Elliots first month of business:

Date Event Units Price

1/3 Purchase Inventory 20 $20/unit

1/6 Purchase Inventory 8 $25/unit

1/9 Sell Inventory 15 $50/unit

1/11 Purchase Inventory 7 $30/unit

1/14 Purchase Inventory 9 $40/unit

1/15 Sell Inventory 20 $55/unit

Elliot Co. uses the perpetual system to account for its inventory.

_______________________

Assuming Elliot Co. uses the LIFO cost-flow assumption, what will the company report as January 2022 Gross Margin (also referred to as Profit Margin)?

Question 14 options:

	$943
	$860
	$1,287
	$1,040

Question 15 (3 points)

Elliot Co. opened its doors for business on January 1st of 2022. Below is a chart outlining the purchases and sales of inventory for Elliots first month of business:

Date Event Units Price

1/3 Purchase Inventory 20 $20/unit

1/6 Purchase Inventory 8 $25/unit

1/9 Sell Inventory 15 $50/unit

1/11 Purchase Inventory 7 $30/unit

1/14 Purchase Inventory 9 $40/unit

1/15 Sell Inventory 20 $55/unit

Elliot Co. uses the perpetual system to account for its inventory.

_______________________

Assuming Elliot Co. uses the LIFO cost-flow assumption, what will the company report as January 31 2022 Ending Inventory?

Question 15 options:

	$360
	$180
	$297
	$263

Question 16 (2 points)

Elliot Co. opened its doors for business on January 1st of 2022. Below is a chart outlining the purchases and sales of inventory for Elliots first month of business:

Date Event Units Price

1/3 Purchase Inventory 20 $20/unit

1/6 Purchase Inventory 8 $25/unit

1/9 Sell Inventory 15 $50/unit

1/11 Purchase Inventory 7 $30/unit

1/14 Purchase Inventory 9 $40/unit

1/15 Sell Inventory 20 $55/unit

Elliot Co. uses the perpetual system to account for its inventory.

_______________________

Assuming Elliot Co. uses the LIFO cost-flow assumption, what will the company report as January 31 2022 LIFO Reserve?

Question 16 options:

	$83
	$92
	$180
	N/A - there will be no LIFO reserve reported.