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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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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