Part III

Use the following information for questions 1316.

Tier II Company uses a periodic inventory system. Details for the inventory account for the month of January, 2008 are as follows:

Units Per unit price Total

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

Purchase, 1/15/08 100 5.30 530

Purchase, 1/28/08 100 5.50 550

An end of the month (1/31/08) inventory showed that 120 units were on hand.

13. How many units did the company sell during January, 2008?

a. 80

b. 120

c. 200

d. 280

14. If the company uses FIFO, what is the value of the ending inventory?

a. $520

b. $600

c. $656

d. $1,424

15. If the company uses LIFO, what is the value of the ending inventory?

a. $520

b. $600

c. $656

d. $1,480

16. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

a. $1,376

b. $1,424

c. $2,800

d. $3,000