1. Effie Company uses a periodic inventory system.

1. Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2014 are as follows:

Units Per unit price Total
Balance, 1/1/14 200 $5.00 $1,000
Purchase, 1/15/14 100 5.30 530
Purchase, 1/28/14 100 5.50 550

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An end of the month (1/31/14) 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?

A. $1,188

B. $1,120

C. $1,532

D. $1,600

2. Netta Shutters has the following inventory information.

July 1 Inventory 30 units @ $8.00
8 Purchase 120 units @ $8.30
17 Purchase 60 units @ $8.40
25 Purchase 90 units @ $8.80

A physical count of merchandise inventory on November 30 reveals that there are 90 units on hand. Assume a periodic inventory system is used. Ending inventory under FIFO is

A. $792.

B. $1,794.

C. $1,740.

D. $738.

3. A company just starting business made the following four inventory purchases in June:

June 1 150 units $ 390
June 10 200 units 585
June 15 200 units 630
June 28 150 units 510
$2,115

A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is

A. $1,290.

B. $825.

C. $1,432.

D. $683.

4. Romanoff Industries had the following inventory transactions occur during 2014:

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 gross profit using LIFO? (rounded to whole dollars)