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 gross profit shown on ZZ Company's income statement for June using the LIFO method
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Financial Accounting with International Financial Reporting Standards
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
4th edition
1119504309, 1-119-50340-8, 9781119503408 , 978-1119504306
