Question

Bramble Corp. had the following inventory transactions occur during 2022:

Units		Cost/unit

Feb. 1, 2022		Purchase		88		$88
Mar. 14, 2022		Purchase		152		$92
May 1, 2022		Purchase		108		$96

The company sold 250 units at $123 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s gross profit using FIFO?

$23432

$22688

$8062

$7318

Answer 1

	Qty	Rate	Amt
Feb 1 2022	88	88	7744
Mar 14 2022	152	92	13984
May 1 2022	108	96	10368
COGS under FIFO
	Qty	Rate	Amt
Feb 1 2022	88	88	7744
Mar 14 2022	152	92	13984
May 1 2022	10	96	960
COGS =			22688
Profit = sales - COGS
i	Sales		30750
	250*123
ii	COGS		22688
iii=i-ii	Gross profit	$                          8,062
Answer =			$                          8,062