Use the following information to answer questions 47. Paulie Company uses a periodic inventory system. Details for the inventory account for the month of January 2007 are as follows:

Units Per unit price Total

Balance, 1/1/2012 200 $5.00 $1,000

Purchase, 1/15/2012 100 5.30 530

Purchase, 1/28/2012 100 5.50 550

An end of the month (1/31/2012) inventory showed that 120 units were on hand.

4. How many units did the company sell during January 2012?

a. 80

b. 120

c. 200

d. 280

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

a. $520

b. $600

c. $656

d. $1,424

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

a. $520

b. $600

c. $656

d. $1,480

7. 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