Question Solved1 Answer Crane Industries had the following inventory transactions occur during 2020: Units Cost/unit $40 2/1/20 Purchase 50 3/14/20 Purchase 96 $40 5/1/20 Purchase 60 $45 The company sold 140 units at $60 each and has a tax rate of 20%. There is no beginning inventory. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO?(rounded to whole dollars) $2500 $5900 O $2800 O $5600

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Transcribed Image Text: Crane Industries had the following inventory transactions occur during 2020: Units Cost/unit $40 2/1/20 Purchase 50 3/14/20 Purchase 96 $40 5/1/20 Purchase 60 $45 The company sold 140 units at $60 each and has a tax rate of 20%. There is no beginning inventory. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO?(rounded to whole dollars) $2500 $5900 O $2800 O $5600
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Transcribed Image Text: Crane Industries had the following inventory transactions occur during 2020: Units Cost/unit $40 2/1/20 Purchase 50 3/14/20 Purchase 96 $40 5/1/20 Purchase 60 $45 The company sold 140 units at $60 each and has a tax rate of 20%. There is no beginning inventory. Assuming that a periodic inventory system is used, what is the company's gross profit using FIFO?(rounded to whole dollars) $2500 $5900 O $2800 O $5600
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Solution:-Option 'C' ($2800) is correct.Explanation:{:[" Giross profit "=" Sales "-" Cost of goods sold "],[=(1.40 xx$60)-$5600(" W.N. ")],[=$8400- ... See the full answer