Romanoff Industries Had the Following Inventory Transactions Occur During 2022

question 148

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 using FIFO? (rounded to whole dollars)

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

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Definitions:

Period Cost

Expenses directly tied to business operations but not a part of the cost of manufacturing or producing goods, often administrative or sales expenses.

Conversion Costs

The combined costs of direct labor and manufacturing overhead involved in transforming materials into finished products.

Prime Costs

The combined costs of direct material and direct labor required to produce a good.

Conversion Costs

Costs incurred to convert raw materials into finished goods, including direct labor and manufacturing overhead.