ABC Company employs a periodic inventory system and sells its inventory to customers for $25per unit. ABC Company had the following inventory information available for the month of May:
May 1 Beginning inventory 2,000 units @ $15 cost per unitMay 8 Sold 1,700 unitsMay 13 Purchased 1,500 units @ $12 cost per unitMay 18 Sold 1,600 unitsMay 21 Purchased 1,000 units @ $18 cost per unitMay 28 Sold 300 unitsMay 30 Purchased 500 units @ $10 cost per unit
During May, ABC Company reported operating expenses of $7,000 and had an income tax rate of 30%.
Calculate the amount of gross profit earned by ABC Company during May using the weighted average method.
Calculate the dollar amount of ending inventory shown on ABC's May 31 balance sheet using theFIFO method.