Answers
Answer:$ 2,986.9
Calculations:
i. Cost of goods sold:
Cost of goods sold [LIFO-Periodic] | |||||
Units | x | Cost/unit | = | Total cost | |
From May 1,2022 purchase | 156 | x | $58 | = | $9,048 |
From Mar 14,2022 purchase | 205 | x | $55 | = | $11,275 |
Total | $20,323 |
ii. Income after tax:
Sales revenue [361 x $74] | $26,714 |
Cost of goods sold | ($20,323) |
Gross profit | $6,391 |
Operating expenses | ($2,124) |
Income before income taxes | $4,267 |
Income tax expense [$4,267 x 30%] | ($1,280.1) |
Income after tax | $2,986.9 |
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