Nicholas Industries Had the Following Inventory Transactions Occur During 2014

question 39

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 after-tax income using LIFO? (rounded to whole dollars)

• A) $1672
• B) $1840
• C) $2388
• D) $2628