Elly Company Uses a Periodic Inventory System An End of the Month (1/31/22) Inventory Showed That 150

question 77

Multiple Choice

Elly Company uses a periodic inventory system. Details for the inventory and purchases accounts for the month of January, 2022 are as follows: $\begin{array}{llrr}&\text { Units } &\text { Per unit price } & \text { Total }\\\hline\text { Balance, } 1 / 1 / 22 &200& \$ 5.00 & \$ 1,000 \\\text { Purchase, } 1 / 15 / 22 & 100 & 5.30 & 530 \\\text { Purchase, } 1 / 28 / 22 & 100 & 5.50 & 550\end{array}$ An end of the month (1/31/22) inventory showed that 150 units were on hand. If the company uses FIFO and sells the units for $9 each, what is the gross profit for the month?

• A) $1,000
• B) $985
• C) $900
• D) $1,440

---

Definitions:

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of making choices.

Microeconomics

The branch of economics that studies how individuals, households, and firms make decisions and allocate resources.

Alternatives

Options or choices available in any given situation.

Production

The process of creating goods and services through the combination of labor, capital, land, and technology.