Hogan Industries had the following inventory transactions occur during 2017: Units Cost/unit Feb. 1, 2017 Purchase 95 $ 40 Mar. 14, 2017 Purchase 164 $41 May 1, 2017 Purchase 116 $43 The company sold 269 units at $55 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? (rounded to whole dollars) A. $10954 B. $3841 C. $3534 D. $11261

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.13MCP
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Hogan Industries had the following inventory
transactions occur during 2017:
Units
Cost/unit
Feb. 1, 2017 Purchase
95
$ 40
Mar. 14, 2017 Purchase
164
$41
May 1, 2017 Purchase
116
$43
The company sold 269 units at $55 each and has a tax rate
of 30%. Assuming that a periodic inventory system is
used, what is the company's gross profit using FIFO?
(rounded to whole dollars)
A. $10954
B. $3841
C. $3534
D. $11261
Transcribed Image Text:Hogan Industries had the following inventory transactions occur during 2017: Units Cost/unit Feb. 1, 2017 Purchase 95 $ 40 Mar. 14, 2017 Purchase 164 $41 May 1, 2017 Purchase 116 $43 The company sold 269 units at $55 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO? (rounded to whole dollars) A. $10954 B. $3841 C. $3534 D. $11261
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