Lee Industries Had the Following Inventory Transactions Occur During 2011

question 20

Multiple Choice

Lee Industries had the following inventory transactions occur during 2011: $\begin{array}{llll}&&\text { Units }&\text { Cost/unit }\\2 / 1 / 11 & \text { Purchase } & 54 & \$ 45 \\3 / 14 / 11 & \text { Purchase } & 93 & \$ 47 \\5 / 1 / 11 & \text { Purchase } & 66 & \$ 49\end{array}$
The company sold 153 units at $\$ 63$ 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 FIFO? (rounded to whole dollars)

• A) \(\$ 2,316\)
• B) \(\$ 2,544\)
• C) \(\$ 1,781\)
• D) \(\$ 1,620\)

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Definitions:

Upstream Division

A segment of a company or industry involved in the early stages of production or supply chain, often dealing with raw materials.

Downstream Division

A segment or part of an organization focused on the later stages of production or distribution in the supply chain, such as sales and delivery of the final product.

Profit Center

A department or segment of a business responsible for generating its own revenue and profit.

Minimizing Costs

The process of reducing expenses to the lowest possible level while maintaining efficiency and effectiveness.