Bonita Company's inventory records show the following data: Inventory: January 1 Purchases: June 18 November 8 Units Unit Cost 9700 $9.00 8800 5500 O $90000 O $88000 O $93500 O $98500 9.00 6.00 A physical inventory on December 31 shows 3500 units on hand. Bonita sells the units for $13 each. The company has an effective tax rate of 22%. Bonita uses the periodic inventory method. If the company uses FIFO, what is the gross profit for the period?
Bonita Company's inventory records show the following data: Inventory: January 1 Purchases: June 18 November 8 Units Unit Cost 9700 $9.00 8800 5500 O $90000 O $88000 O $93500 O $98500 9.00 6.00 A physical inventory on December 31 shows 3500 units on hand. Bonita sells the units for $13 each. The company has an effective tax rate of 22%. Bonita uses the periodic inventory method. If the company uses FIFO, what is the gross profit for the period?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Bonita Company's inventory records show the following data:
Units Unit Cost
9700
$9.00
9.00
6.00
Inventory: January 1
Purchases: June 18
November 8.
O $90000
Ⓒ$88000
8800
A physical inventory on December 31 shows 3500 units on hand. Bonita sells the units for $13 each. The company has an effective tax
rate of 22%. Bonita uses the periodic inventory method. If the company uses FIFO, what is the gross profit for the period?
O $93500
Ⓒ $98500
5500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0b68c17-0012-4355-9326-4020008027d9%2F7ff02736-78db-40c2-8dd8-f760123b0882%2Fo42i32_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Bonita Company's inventory records show the following data:
Units Unit Cost
9700
$9.00
9.00
6.00
Inventory: January 1
Purchases: June 18
November 8.
O $90000
Ⓒ$88000
8800
A physical inventory on December 31 shows 3500 units on hand. Bonita sells the units for $13 each. The company has an effective tax
rate of 22%. Bonita uses the periodic inventory method. If the company uses FIFO, what is the gross profit for the period?
O $93500
Ⓒ $98500
5500
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