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Question - ABC Company employs a periodic inventory system and sells its inventory to customers for $25 per unit. ABC Company had the following inventory information available for the month of May:
May 1 Beginning inventory 2,000 units @ $10 cost per unit
May 8 Sold 1,200 units
May 13 Purchased 1,000 units @ $12 cost per unit
May 18 Sold 1,000 units
May 21 Purchased 1,000 units @ $15 cost per unit
May 28 Sold 700 units
May 30 Purchased 1,000 units @ $19 cost per unit
During May, ABC Company reported operating expenses of $5,000 and had an income tax rate of 30%.
Calculate the dollar amount of ending inventory shown on ABC Company's May 31 balance sheet using the FIFO method. Do not use decimals in your answer.
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