Question

Current Attempt in Progress Blossom Company had the following inventory transactions occur during 2022: Units Cost/unit Feb. 1.2022 Purchase 127 $53 Mar. 14.2022 Purchase 219 $55 May 1, 2022 Purchase 156 $58 The company sold 361 units at $74 each and has a tax rate of 30%. Assuming that a periodic invento expenses of $2124, what is the company's after-tax income using LIFO? O $3460.80 O $2986.90 O $4944.00 O $4267.00 e Textbook and Media Save for Later Attempts:00 Type here to search о в co

Answer 1

Answer:$ 2,986.9

Calculations:

i. Cost of goods sold:

Cost of goods sold [LIFO-Periodic]
	Units	x	Cost/unit	=	Total cost
From May 1,2022 purchase	156	x	$58	=	$9,048
From Mar 14,2022 purchase	205	x	$55	=	$11,275
Total					$20,323

ii. Income after tax:

Sales revenue [361 x $74]	$26,714
Cost of goods sold	($20,323)
Gross profit	$6,391
Operating expenses	($2,124)
Income before income taxes	$4,267
Income tax expense [$4,267 x 30%]	($1,280.1)
Income after tax	$2,986.9