ABC Company employs a periodic inventory system and sells its inventory to custo
ID: 2433929 • Letter: A
Question
ABC Company employs a periodic inventory system and sells its inventory to customers for $20 per
unit. ABC Company had the following inventory information available for the month of May:May 1 Beginning inventory 2,000 units @ $12 cost per unitMay 8 Sold 600 unitsMay 13 Purchased 1,400 units @ $10 cost per unitMay 18 Sold 800 unitsMay 19 Sold 300 unitsMay 21 Purchased 1,700 units @ $18 cost per unitMay 28 Purchased 1,400 units @ $16 cost per unitMay 30 Sold 900 unitsDuring May, ABC Company reported operating expenses of $3,000 and had an income tax rate of 35%.
Calculate the amount of net income reported on ABC Company's income statement for May using the
weighted average method. Do not use decimals in your answer.
Explanation / Answer
x.Hculate the amount of gross profit earned by ABC Company during May using the FIFO method.