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Question - Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2014 are as follows:
Units
Per Unit Price
Total
Balance, 1/1/14
200
$5.00
$1,000
Purchase, 1/15/14
100
5.30
530
Purchase, 1/28/14
5.50
550
An end of the month (1/31/14) inventory showed that 160 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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