Dole Industries Had the Following Inventory Transactions Occur During 2017

question 166

Multiple Choice

Dole Industries had the following inventory transactions occur during 2017: $\begin{array}{lllll}&&\text { Units } & \text { Cost/unit } \\\text { Feb. 1.2017 } & \text { Purchase } & 90 & \$ 90 \\\text { Mar. 14.2017 } & \text { Purchase } & 155 & \$ 94 \\\text { Mav 1.2017 } & \text { Purchase } & 110 & \$ 98\end{array}$ The company sold 255 units at $126 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using LIFO? (rounded to whole dollars)

• A)$24,410
• B)$23,650
• C)$8,480
• D)$7,720

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded for it at those prices.

Good Sold

Refers to merchandise or items that have been purchased or exchanged in a transaction.

Tax on Buyers

is a tax that is directly levied on consumers when they purchase goods or services, effectively increasing the purchase price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping to the right indicating an inverse relationship.