8. Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright...
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8. Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):
41 units at $96
71 units at $85
171 units at $63
Sales for the year totaled 269 units, leaving 14 units on hand at the end of the year.
Ending inventory using the LIFO method is:
Multiple Choice
a. $932.
b. $1,344.
c. $882.
d. $1,026.
9. Nu Company reported the following pretax data for its first year of operations.
Net sales
2,840
Cost of goods available for sale
2,440
Operating expenses
810
Effective tax rate
40
%
Ending inventories:
If LIFO is elected
960
If FIFO is elected
1,160
What is Nu's net income if it elects FIFO?
Multiple Choice
a. $330.
b. $450.
c. $750.
d. $1,560.
10. Nu Company reported the following pretax data for its first year of operations.
Net sales
2,800
Cost of goods available for sale
2,410
Operating expenses
720
Effective tax rate
30
%
Ending inventories:
If LIFO is elected
950
If FIFO is elected
1,210
What is Nu's net income if it elects LIFO?
Multiple Choice
a. $880.
b. $434.
c. $620.
d. $616.
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