Dobler Company Uses a Periodic Inventory System An End of the Month (1/31/2017) Inventory Showed That 240

question 32

Multiple Choice

Dobler Company uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows: $\begin{array}{llrr}&\text { Units } &\text { Per unit price }&\text { Total }\\\text { Balance, } 1 / 1 / 2017 & 300 & \$ 5.00 & \$ 1.500 \\\text { Purchase, } 1 / 15 / 2017 & 150 & 5.30 & 795 \\\text { Purchase, } 1 / 28 / 2017 & 150 & 5.50 & 825\end{array}$ An end of the month (1/31/2017) inventory showed that 240 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

• A)$1,782
• B)$1,818
• C)$3,600
• D)$2,400

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Definitions:

Operating Costs

Expenses associated with running a business's core activities on a day-to-day basis, such as salaries, rent, and utilities.

Discount Rate

The discount rate that is employed during discounted cash flow evaluation to ascertain the present valuation of future expected cash flows.

Simple Rate of Return

A financial metric that calculates the gain or loss of an investment over a specific period as a percentage of the investment's initial cost.

Cash Outflows

Payments or expenditures made by a business or individual, resulting in a decrease in cash balance.