Calculate the amount of gross profit earned by company

Assignment Help Financial Accounting

Reference no: EM131267693

ABC Company employs a periodic inventory system and sells its inventory to customers for $20 per unit. ABC Company had the following inventory information available for the month of May: May 1 Beginning inventory 2,000 units @ $12 cost per unit May 8 Sold 600 units May 13 Purchased 1,400 units @ $10 cost per unit May 18 Sold 800 units May 19 Sold 300 units May 21 Purchased 1,700 units @ $18 cost per unit May 28 Purchased 1,400 units @ $16 cost per unit May 30 Sold 900 units During May, ABC Company reported operating expenses of $3,000 and had an income tax rate of 35%. Calculate the amount of gross profit earned by ABC Company during May using the FIFO method. Do not use decimals in your answer.

Reference no: EM131267693

Questions Cloud

Create startup budget for a nonprofit : Create a startup Budget for a nonprofit small ESL school for students 2nd to 6th grades in Hoboken ,NJ (PLEASE NOTE THAT ALL NUMBERS HAVE TO BE FROM REAL LIFE ) Please consider the following:

The cash account in the general ledger : The cash account in the general ledger of XYZ Company shows a balance of $18,700 at June 30, 2004. The June 30 bank statement; however, shows a balance of $21,500. The only bank reconciling items consist of: NSF check from customer in the amount of $..

Compensation package : Thomas Linebarger is the Chairman and CEO of Cummins Engine, Inc. What is the document, provided to shareholders each year, that provides details on Mr. Linebarger’s compensation package?

When traditional absorption costing is employed : When traditional absorption costing is employed, which of the following is false? Internal accounting systems, including performance measures, affect behavior. It is often suggested that people pay attention to the dimensions of their work performanc..

Calculate the amount of gross profit earned by company : ABC Company employs a periodic inventory system and sells its inventory to customers for $20 per unit. ABC Company had the following inventory information available for the month of May: Calculate the amount of gross profit earned by ABC Company duri..

Uses variable costing for internal decision making purposes : CC uses absorption (full) costing and its direct competitor, FF uses variable costing for internal decision making purposes. Last year, both companies reported the same production and sales volumes.

Determine their taxable income : A Corporation has the following information for 2014. Using schedule M-1 of form 1120, determine their taxable income:

Prepare budgets-budget figures are often biased : Because people prepare budgets, budget figures are often biased. Which is true?

In negotiating a price-minimum acceptable selling price : The Cintron Company sells their single product for $60 per unit. Unit product costs are as follows: Direct materials$20 Direct labor20 Manufacturing overhead4 Total$44 A special order to purchase 10,000 units was recently received. There is enough ca..

User Account

All Pages