Problem
M.T. Glass, Inc. employs a periodic inventory system and sells its inventory to customers for $14.25 per unit. At June 1, M.T. Glass had inventory with a total cost of $75,000 on hand (note - the number of units in beginning inventory is intentionally not given). During June, M.T. Glass recorded the following purchases of inventory:
June 9 8,000 units purchased at $7.10 per unit
June 12 ????? units purchased at $5.70 per unit
June 19 14,000 units purchased at $6.80 per unit
June 26 16,000 units purchased at ????? per unit
During June, M.T. Glass sold 38,000 units and had 22,000 units left unsold at June 30.
Using FIFO, M.T. Glass calculated its income before tax for June to be $158,300 and its ending inventory at June 30 to be $124,000.
Using weighted average, M.T. Glass calculated its gross profit for June to be $308,940.
Using LIFO, M.T. Glass calculated its net income for June to be $111,825.
Calculate M.T. Glass' tax rate for June.