Aug / 09

Lee Industries had the following inventory transactions occur during 2010:?

                        Lee Industries had the following inventory transactions occur during 2010:

2/1/10       Purchase     18          $45
3/14/10     Purchase      31         $47
5/1/10       Purchase     22          $49

The company sold 51 units at $63 each and has a tax rate of 30%.  Assuming that a periodic inventory system is used, what is the company's after-tax income using LIFO?  (rounded to whole dollars)

a.  $540

b.  $594

c.  $772

d.  $848
Answer