Graham Company uses a periodic inventory system. Details for the inventory account the month of January 2020 are as follows: Units Total Per unit price Balance, 1/1/20 400 $5.00 $2,000 Purchase, 1/15/20 200 5.30 1,060 Purchase, 1/28/20 200 5.50 1,100 An end of the month (1/31/20) inventory showed that 240 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

Graham Company uses a periodic inventory system. Details for the inventory account the month of January 2020 are as follows: Units Total Per unit price Balance, 1/1/20 400 $5.00 $2,000 Purchase, 1/15/20 200 5.30 1,060 Purchase, 1/28/20 200 5.50 1,100 An end of the month (1/31/20) inventory showed that 240 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

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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