Hogan Industries Had the Following Inventory Transactions Occur During 2022

question 35

Multiple Choice

Hogan Industries had the following inventory transactions occur during 2022: $$\begin{array} { r l l c } & & \text { Units } & \text { Cost/unit } \\\text { Feb. 1, 2022 } & \text { Purchase } & 108 & \$ 45 \\\text { Mar. 14,2022 } & \text { Purchase } & 186 & \$ 47 \\\text { May 1, } 2022 & \text { Purchase } & 132 & \$ 49\end{array}$$ The company sold 306 units at $63 each and has a tax rate of 30%.Assuming that a periodic inventory system is used and operating expenses of $1800 what is the company's after-tax income using LIFO? (rounded to whole dollars)

• A)$2832
• B)$3288
• C)$2302
• D)$1982

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Definitions:

Estuary

A coastal body of water that connects to an ocean, in which fresh water from the land mixes with salt water.

Lianas

Woody vines that climb up trees and other structures to reach sunlight in dense forest environments.

Epiphytes

Plants that grow on other plants without drawing nutrients from their hosts, obtaining moisture and nutrients from the air or rain.

Tropical Rain Forest

A dense, warm, wet forest found near the equator, known for its biodiversity and high rainfall.