Question

Larson Company employs a periodic inventory system and reported the
following inventory information for the month of August:

August 1    Beginning inventory 2,600 units @ $27 cost per unit
August 6    Sold 1,100 units
August 15   Purchased 1,400 units @ $36 cost per unit
August 18   Sold 1,500 units
August 23   Purchased 900 units @ $29 cost per unit
August 26   Purchased 600 units @ $23 cost per unit
August 29   Sold 2,300 units
August 30   Purchased 1,500 units @ $40 cost per unit

During August, Larson Company reported operating expenses of $29,000
and had an income tax rate of 39%.

Using the weighted average method, Larson Company's gross profit for
August totaled $71,050.

Calculate the amount of net income reported on Larson Company's income
statement for August using the LIFO method.

Answer 1