Romanoff Industries Had the Following Inventory Transactions Occur During 2018

question 131

Multiple Choice

Romanoff Industries had the following inventory transactions occur during 2018: The company sold 150 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's after-tax income using LIFO? (rounded to whole dollars)

• A) $2,323
• B) $2,486
• C) $3,318
• D) $3,552

---

Definitions:

Regular Time Cost

The cost associated with labor during normal working hours, excluding overtime or premium pay rates.

Over Time Cost

Expenses incurred from workers working beyond their standard hours, often paid at a higher rate.

Predictable Variability

Variations in demand, supply, or process that can be anticipated based on historical patterns, allowing for better planning and management.

Demand Management

The process of forecasting and managing customer demand to optimize supply chain and production processes.