Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2015 are as follows: $$\begin{array} { l c c r }
& \text { Units } & \text { Per unit price } & \text { Total } \
\text { Balance, 1/1/15 } & 200 & \$ 5.00 & \$ 1,000 \
\text { Purchase, 1/15/15 } & 100 & 5.30 & 530 \
\text { Purchase, 1/28/15 } & 100 & 5.50 & 550
\end{array}$$ An end of the month (1/31/15) inventory showed that 160 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

Question

Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2015 are as follows: $$\begin{array} { l c c r } 
& \text { Units } & \text { Per unit price } & \text { Total } \
\text { Balance, 1/1/15 } & 200 & \$ 5.00 & \$ 1,000 \
\text { Purchase, 1/15/15 } & 100 & 5.30 & 530 \
\text { Purchase, 1/28/15 } & 100 & 5.50 & 550
\end{array}$$ An end of the month (1/31/15) inventory showed that 160 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

Quizplus · Accepted Answer

The Answer of Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2015 are as follows: $$\begin{array} { l c c r } 
& \text { Units } & \text { Per unit price } & \text { Total } \
\text { Balance, 1/1/15 } & 200 & \$ 5.00 & \$ 1,000 \
\text { Purchase, 1/15/15 } & 100 & 5.30 & 530 \
\text { Purchase, 1/28/15 } & 100 & 5.50 & 550
\end{array}$$ An end of the month (1/31/15) inventory showed that 160 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

Effie Company Uses a Periodic Inventory System An End of the Month (1/31/15) Inventory Showed That 160