Cheyenne Corp. uses a periodic inventory system. Details for the inventory account for the month of January 2022 are as follows: Units Per unit price Total Balance, 1/1/2022 260 $4.00 $1040 Purchase, 1/15/2022 130 4.70 611 Purchase, 1/28/2022 130 4.80 624 An end of the month (1/31/2022) inventory showed that 210 units were on hand. If the company uses FIFO and sells the units for $9 each, what is the gross profit for the month? O $1275 O $1515 ○ $2790 ○ $1890
Cheyenne Corp. uses a periodic inventory system. Details for the inventory account for the month of January 2022 are as follows: Units Per unit price Total Balance, 1/1/2022 260 $4.00 $1040 Purchase, 1/15/2022 130 4.70 611 Purchase, 1/28/2022 130 4.80 624 An end of the month (1/31/2022) inventory showed that 210 units were on hand. If the company uses FIFO and sells the units for $9 each, what is the gross profit for the month? O $1275 O $1515 ○ $2790 ○ $1890
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Cheyenne Corp. uses a periodic inventory system. Details for the inventory account for the month of January 2022 are as follows:
Units Per unit price
Total
Balance, 1/1/2022
260
$4.00
$1040
Purchase, 1/15/2022
130
4.70
611
Purchase, 1/28/2022
130
4.80
624
An end of the month (1/31/2022) inventory showed that 210 units were on hand. If the company uses FIFO and sells the units for $9
each, what is the gross profit for the month?
$1275
$1515
$2790
$1890
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