Romanoff Industries Had the Following Inventory Transactions Occur During 2015

question 21

Multiple Choice

Romanoff Industries had the following inventory transactions occur during 2015: $\begin{array}{llll}&&\text { Units }&\text { Cost/unit }\\2 / 1 / 15 & \text { Purchase } & 54 & \$ 45 \\3 / 14 / 15 & \text { Purchase } & 93 & \$ 47 \\5 / 1 / 15 & \text { Purchase } & 66 & \$ 49\end{array}$ 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 gross profit using FIFO? (rounded to whole dollars)

• A) $3,318
• B) $3,552
• C) $6,948
• D) $7,182

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Paid-in Capital

The total amount of money or other assets that shareholders or owners have contributed to the company for use in business operations.

Par Value

The stated value of a financial instrument like a bond or stock share, as declared by the issuer.