Romanoff Industries Had the Following Inventory Transactions Occur During 2022

question 97

Multiple Choice

Romanoff Industries had the following inventory transactions occur during 2022: The company sold 150 units at $70 each and has a tax rate of 30%.Assuming that a periodic inventory system is used, what is the company's gross profit (rounded to whole dollars) using LIFO?

• A)$3,318
• B)$3,552
• C)$6,948
• D)$7,182

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Definitions:

Net Income

The remaining income of a company after deducting expenses and taxes from the total income generated.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, often used in accounting and inventory valuation.

Accounting Principle

Fundamental guidelines or rules that govern how financial statements are prepared and presented.

Fasb

The Financial Accounting Standards Board, an organization that establishes accounting and financial reporting standards for companies and nonprofits in the United States.