Effie Company Uses a Periodic Inventory System An End of the Month (1/31/15) Inventory Showed That 160

question 78

Multiple Choice

Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2015 are as follows: $$\begin{array} { l c c r } & \text { Units } & \text { Per unit price } & \text { Total } \\\text { Balance, 1/1/15 } & 200 & \$ 5.00 & \$ 1,000 \\\text { Purchase, 1/15/15 } & 100 & 5.30 & 530 \\\text { Purchase, 1/28/15 } & 100 & 5.50 & 550\end{array}$$ An end of the month (1/31/15) inventory showed that 160 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) $1,120
• B) $1,188
• C) $1,532
• D) $1,600

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