Hogan Industries Had the Following Inventory Transactions Occur During 2017

question 155

Multiple Choice

Hogan Industries had the following inventory transactions occur during 2017: $\begin{array}{rlll}&&\text { Units } & \text { Cost/unit } \\\text { Feb. 1,2017 } & \text { Purchase } & 108 & \$ 45 \\\text { Mar. 14,2017 } & \text { Purchase } & 186 & \$ 47 \\\text { May } 1,2017 & \text { Purchase } & 132 & \$ 49\end{array}$ The company sold 306 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $1,800, what is the company's after-tax income using LIFO? (rounded to whole dollars)

• A)$2,832
• B)$3,288
• C)$2,302
• D)$1,982

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Definitions:

Motor Development

The progression of muscle coordination and control that enables movement and physical tasks.

Bowlegged

A condition characterized by outward curving of the legs, noticeable when standing with feet together.

Pincer Grasp

A fine motor skill developed in infancy involving the use of the index finger and thumb to grasp small objects.

Ulnar Grasp

Ulnar grasp is a developmental milestone in infants where they can hold objects by closing their fingers against the palm, using the pinky side of the hand.