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Financial Accounting

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Inventory Cost Flow - FIFO

FINACT-IXUAVJ

During the month of January 2014, Keebler Enterprises had the following information related to its Inventory account:

Date Description
1/1 Beg. Bal. 100 units @ \$12.00 each
1/4 Purchased 200 units @ \$11.80 each
1/14 Sold 150 units @ \$15.20 each
1/23 Purchased 200 units @ \$12.20 each
1/28 Sold 250 units @ \$15.30 each

If Stadler values its inventory using the perpetual FIFO method, what would be the impact of these transactions on its reported income (before tax) for the month of April 2014?

A

\$1,200

B

\$1,325

C

\$1,790

D

\$2,990

E

\$4,780

F

\$6,105