Question
ZZ Company employs a periodic inventory system and sells its inventory to customers for $39 per unit. ZZ Company had the following inventory information available
ZZ Company employs a periodic inventory system and sells its inventory to customers for $39 per unit. ZZ Company had the following inventory information available for June:
June 1 Beginning inventory 1,100 units @ $22.10 cost per unit
June 6 Purchased 3,400 units @ $16.40 cost per unit
June 11 Sold 3,000 units
June 15 Purchased 1,300 units @ $33.60 cost per unit
June 19 Sold 1,200 units
June 23 Purchase 3,700 units @ $20.70 cost per unit
June 26 Sold 3,600 units
June 28 Purchased 2,500 units @ $28.20 cost per unit
During June, ZZ Company reported operating expenses of $18,000 and had an income tax rate of 36%.
Calculate the amount of net income shown on ZZ Company's income statement for June using FIFO method.
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