Question

Nu Company reported the following pretax data for its first year of operations.

Net sales		2,800
Cost of goods available for sale		2,500
Operating expenses		880
Effective tax rate		25	%
Ending inventories:
If LIFO is elected		820
If FIFO is elected		1,060

What is Nu's net income if it elects FIFO?

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Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):

• 42 units at $101 per unit
• 72 units at $88 per unit
• 171 units at $60 per unit

Sales for the year totaled 272 units, leaving 13 units on hand at the end of the year.

Ending inventory using the average cost method is: (Do not round unit cost calculation. Round your final answer to the nearest whole dollar amount.)

Answer 1