Effie Company Uses a Periodic Inventory System

question 46

Multiple Choice

Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2018 are as follows: An end of the month (1/31/18) 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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American Express

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A legal agreement between a borrower and a lender in which the borrower receives something of value now and agrees to repay the lender at a future date, usually with interest, under specified conditions.

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