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  3. 8. fulbright corp. uses the periodic inventory sys

8. Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright...

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Accounting

8. Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):

41 units at $96

71 units at $85

171 units at $63

Sales for the year totaled 269 units, leaving 14 units on hand at the end of the year.

Ending inventory using the LIFO method is:

Multiple Choice

a. $932.

b. $1,344.

c. $882.

d. $1,026.

9. Nu Company reported the following pretax data for its first year of operations.

Net sales 2,840
Cost of goods available for sale 2,440
Operating expenses 810
Effective tax rate 40 %
Ending inventories:
If LIFO is elected 960
If FIFO is elected 1,160

What is Nu's net income if it elects FIFO?

Multiple Choice

a. $330.

b. $450.

c. $750.

d. $1,560.

10. Nu Company reported the following pretax data for its first year of operations.

Net sales 2,800
Cost of goods available for sale 2,410
Operating expenses 720
Effective tax rate 30 %
Ending inventories:
If LIFO is elected 950
If FIFO is elected 1,210

What is Nu's net income if it elects LIFO?

Multiple Choice

a. $880.

b. $434.

c. $620.

d. $616.

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