Graham Company Uses a Periodic Inventory System An End of the Month (1/31/11) Inventory Showed That 180

question 135

Multiple Choice

Graham Company uses a periodic inventory system.Details for the inventory account for the month of January, 2011 are as follows:
$\begin{array}{llrr}&\text { Units } &\text { Per unit price }&\text { Total }\\\text { Balance, } 1 / 1 / 11 & 300 & \$ 5.00 & \$ 1500 \\\text { Purchase, } 1 / 15 / 11 & 150 & 5.30 & 795 \\\text { Purchase, } 1 / 28 / 11 & 150 & 5.50 & 825\end{array}$

An end of the month (1/31/11) inventory showed that 180 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)$2,064
• B)$2,136
• C)$4,200
• D)$4,500

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