What is the earnings before tax amount

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Reference no: EM131837393

1) Different FIFO inventory assumptions:

Beginning inventory of 10 units @ $5 = $50

Purchases month #1 of 10 units @ $15= $150

Purchases month #2 of 10 units @ $10 = $100

Cost of goods available for sale (subtotal) = $300

Less ending inventory of 10 units

Equals cost of goods sold (also known as cost of sales)

Cost of goods sold or cost of sales = $200

Sales equal $500 and operating expenses equal $50.

What is the earnings before tax (EBT) amount?

A. $350

B. $300

C. $250

D. None of these is correct.

Reference no: EM131837393

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