Question

ABC Company employs a periodic inventory system and sells
its inventory to customers for $23 per unit. ABC Company
had the following inventory information available for the
month of May:

May 1    Beginning inventory 1,600 units @ $12 cost per unit
May 8    Sold 1,100 units
May 13   Purchased 1,700 units @ $24 cost per unit
May 18   Sold 1,000 units
May 21   Purchased 1,500 units @ $18 cost per unit
May 28   Sold 800 units
May 30   Purchased 1,200 units @ $20 cost per unit

During May, ABC Company reported operating expenses of
$5,000 and had an income tax rate of 36%.

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

Answer 1

Please refer to the image below for the solution

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