Dobler Company uses a periodic inventory system. Details for the inventory account for the month of January 2022 are as follows: Units Per unit price Total Balance, 1/1/2022 300 $5.00 $1,500 Purchase, 1/15/2022 150 5.30 795 Purchase, 1/28/2022 150 5.50 825 An end of the month (1/31/2022) inventory showed that 240 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

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8 January, 18:03

Dobler Company uses a periodic inventory system. Details for the inventory account for the month of January 2022 are as follows: Units Per unit price Total Balance, 1/1/2022 300 $5.00 $1,500 Purchase, 1/15/2022 150 5.30 795 Purchase, 1/28/2022 150 5.50 825 An end of the month (1/31/2022) inventory showed that 240 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

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Howard · Answer 1

Option D $1,190 is correct

Explanation:

Total units available 400 = 200+100+100

Less: Ending inventory 160

Units sold 240

Sales revenue 2400 = 240*10

Less: Cost of goods sold 1210 = (200*5) + (240-200) * 5.25

Gross profit for the month 1190

Option D $1,190 is correct