Question

THE Company employs a periodic inventory system and
sells its inventory to customers for $10 per unit.
THE Company had the following inventory information
available for the month of May:

May 1    Beginning inventory 280 units @ $3.80 cost
         per unit
May 6    Purchased 350 units @ $4.90 cost per unit
May 8    Purchased 240 units @ $4.10 cost per unit
May 14   Sold 410 units
May 19   Purchased 400 units @ $5.75 cost per unit
May 23   Sold 270 units
May 27   Sold 120 units
May 29   Purchased 230 units @ $3.90 cost per unit

The amount of gross profit reported on THE Company's
income statement for May using the FIFO method was
equal to:

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
May-01	280	3.8	1064	280	3.8	1064
Purchasse
May-06	350	4.9	1715	350	4.9	1715
May-08	240	4.1	984	170	4.1	697	70	4.1	287
19-May	400	5.75	2300				400	5.75	2300
29-May	230	3.9	897				230	3.9	897
TOTAL	1500		6960	800		3476	700		3484
	Sales (800 units @10)	8000
	Less: Cost of goods sold	3476
	Gross Profit		4524
Answer is Gross Profit = $ 4524