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Gross Profit for the Period Assignment

Author:
February 24th, 2020

28. Holliday Company's inventory records show the following data: Units Unit Cost Inventory, January 1 5,000 ₤2.70 Purchases: June 18 4,500 2.40 November 8 3,000 2.10 December 31 2000 3.6 (r=0.2, A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for ₤3.60 each. The company has an effective tax rate of 20%. Holliday uses the periodic inventory method. If the company uses FIFO, what is the gross profit for the period?

a. ₤600 b. ₤3,000 c. ₤6,300 d. ₤11,400. .

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