Nicholas Industries had the following inventory transactions occur during 2014: $$\begin{array} { l l c c }
&& \text { Units } & \text { Cost/unit } \
2 / 1 / 16 & \text { Purchase } & 54 & \$ 45 \
3 / 14 / 16 & \text { Purchase } & 93 & \$ 47 \
5 / 1 / 16 & \text { Purchase } & 66 & \$ 49
\end{array}$$ The company sold 150 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used what is the company's after-tax income using FIFO? (rounded to whole dollars)
A) $1672
B) $1840
C) $2388
D) $2628

Question

Nicholas Industries had the following inventory transactions occur during 2014: $$\begin{array} { l l c c } 
&& \text { Units } & \text { Cost/unit } \
2 / 1 / 16 & \text { Purchase } & 54 & \$ 45 \
3 / 14 / 16 & \text { Purchase } & 93 & \$ 47 \
5 / 1 / 16 & \text { Purchase } & 66 & \$ 49
\end{array}$$ The company sold 150 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used what is the company's after-tax income using FIFO? (rounded to whole dollars)
A) $1672
B) $1840
C) $2388
D) $2628

Quizplus · Accepted Answer

The Answer of Nicholas Industries had the following inventory transactions occur during 2014: $$\begin{array} { l l c c } 
&& \text { Units } & \text { Cost/unit } \
2 / 1 / 16 & \text { Purchase } & 54 & \$ 45 \
3 / 14 / 16 & \text { Purchase } & 93 & \$ 47 \
5 / 1 / 16 & \text { Purchase } & 66 & \$ 49
\end{array}$$ The company sold 150 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used what is the company's after-tax income using FIFO? (rounded to whole dollars)
A) $1672
B) $1840
C) $2388
D) $2628

Nicholas Industries Had the Following Inventory Transactions Occur During 2014