Dobler Company Uses a Periodic Inventory System An End of the Month (1/31/2022) Inventory Showed That 240

question 9

Multiple Choice

Dobler Company uses a periodic inventory system.Details for the inventory account for the month of January 2022 are as follows: $$\begin{array} { l l r r } & \underline { \text { Units } } & \underline{\text { Per unit price }} & \underline { \text { Total } } \\\text { Balance, } 1 / 1 / 2022 & 300 & \$ 5.00 & \$ 1,500 \\\text { Purchase, } 1 / 15 / 2022 & 150 & 5.30 & 795 \\\text { Purchase, } 1 / 28 / 2022 & 150 & 5.50 & 825\end{array}$$ An end of the month (1/31/2022) inventory showed that 240 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)$1782
• B)$1818
• C)$3600
• D)$2400

---

Definitions:

Nominal Wage

The wage measured in current money or monetary units, without adjusting for inflation.

Real Wage

Wages adjusted for inflation, reflecting the actual purchasing power of income earned from labor.

Inflation

The tempo at which the aggregate cost of goods and services ascends, depleting the power of purchase.

Nominal Wage

Nominal Wage refers to the amount of money paid to workers in current dollars, without adjusting for inflation or purchasing power.