Nicholas Industries Had the Following Inventory Transactions Occur During 2014

question 51

Multiple Choice

Nicholas Industries had the following inventory transactions occur during 2014: $$\begin{array} { l l c c } && \text { Units } & \text { Cost/unit } \\2 / 1 / 16 & \text { Purchase } & 54 & \$ 45 \\3 / 14 / 16 & \text { Purchase } & 93 & \$ 47 \\5 / 1 / 16 & \text { Purchase } & 66 & \$ 49\end{array}$$ The company sold 140 units at $65 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) $2388
• B) $2678
• C) $6472
• D) $6712

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Definitions:

Mental Reframing

The process of intentionally shifting one's perspective on a situation to change its emotional impact, often used in cognitive behavioral therapy.

Action Identification Theory

A psychological theory that explains how individuals conceive of their actions in terms of higher-level goals or lower-level details.

Concrete Goal

A specific, clearly defined, and measurable objective that an individual or group aims to achieve.

Two-Factor Theory

A concept in psychology that proposes emotional experiences arise from a combination of a state of physiological arousal and a cognitive interpretation of that arousal.