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ABC Company employs a periodic inventory system and sells its inventory to customers for $25 per unit. ABC Company had the following inventory information available for the month of May:

May 1 Beginning inventory 2,000 units @ $10 cost per unit
May 8 Sold 1,200 units
May 13 Purchased 1,000 units @ $12 cost per unit
May 18 Sold 1,000 units
May 21 Purchased 1,000 units @ $15 cost per unit
May 28 Sold 700 units
May 30 Purchased 1,000 units @ $19 cost per unit

During May, ABC Company reported operating expenses of $5,000 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. Do not use decimals in your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9955731

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