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ABC Company employs a periodic inventory system and sells its inventory to customers for $20 perunit. ABC Company had the following inventory information available for the month of May:
May 1 Beginning inventory 2,000 units @ $12 cost per unitMay 8 Sold 600 unitsMay 13 Purchased 1,400 units @ $10 cost per unitMay 18 Sold 800 unitsMay 19 Sold 300 unitsMay 21 Purchased 1,700 units @ $18 cost per unitMay 28 Purchased 1,400 units @ $16 cost per unitMay 30 Sold 900 units
During May, ABC Company reported operating expenses of $3,000 and had an income tax rate of 35%.
Calculate the dollar amount of ending inventory shown on ABC's May 31 balance sheet using theLIFO method. Do not use decimals in your answer.
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