Use the Information Below to Determine the Sales Revenue,cost of Goods

question 66

Essay

Use the information below to determine the sales revenue,cost of goods sold and gross profit that would be reported for the company related to the March 16 sale assuming the company uses LIFO inventory valuation and a perpetual inventory system.
$$\begin{array} { | l | l | } \hline \text { January 1: } & \text { Purchased } 100 \text { units at } \$ 10 \text { per unit. } \\\hline \text { February 5: } & \text { Purchased } 60 \text { units at } \$ 12 \text { per unit. } \\\hline \text { March 16: } & \text { Sold } 40 \text { units for } \$ 16 \text { per unit. } \\\hline\end{array}$$

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Definitions:

FICA Tax

Federal Insurance Contributions Act tax, a U.S. federal payroll tax funding Social Security and Medicare benefits.

Federal Income Tax

A tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Medical Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured.

Withholding Allowance

An amount claimed on tax Form W-4 that determines how much income tax the employer will withhold from each paycheck. Each allowance claimed (as for a spouse or dependents) reduces the amount of income tax withheld.