ABC Company employs a periodic inventory system and sells its inventory to customers for $23...
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Accounting
ABC Company employs a periodic inventory system and sells its inventory to customers for $23 per unit. ABC Company reported the following inventory information for the month of May:
May 1 Beginning inventory 4,200 units @ $9 cost per unit
May 6 Purchased 2,000 units @ $12 cost per unit
May 8 Sold 3,000 units
May 13 Purchased 2,500 units @ $6 cost per unit
May 18 Sold 1,900 units
May 21 Purchased 4,000 units @ $8 cost per unit
May 28 Sold 2,200 units
May 30 Purchased 2,300 units @ $17 cost per unit
ABC Company reported operating expenses of $26,100 for May and they had a tax rate of 34%.
A)Calculate the dollar amount of ending inventory shown on ABC Company's May 31 balance sheet using the FIFO method.
B)Calculate the amount of gross profit shown on ABC Company's income statement for May using the weighted average method.
C)Calculate the amount of net income shown on ABC Company's income statement for May using the LIFO method.
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