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?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 1MP: Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2,...

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Question

Graham Company uses a periodic inventory system. Details for the inventory account for
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?

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