Hogan Industries Had the Following Inventory Transactions Occur During 2022

question 143

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 what is the company's gross profit using LIFO? (rounded to whole dollars)

• A)$14646
• B)$14190
• C)$5088
• D)$4632

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Definitions:

Evaluation

The systematic determination of a subject's merit, worth and significance, using criteria governed by a set of standards.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Enrollment

The process of registering or being registered for a course, school, program, or an activity, often used in educational and institutional contexts.

Cost to Provide Services

The total expenses incurred in the delivery of services, including labor, materials, and overhead costs.