Problem:
ABC Company employs a periodic inventory system and sells its inventory to customers for $32 per unit. ABC Company had the following inventory information available for the month of May:
- May 1 Beginning inventory 2,000 units @ $15 cost per unit
- May 8 Sold 1,100 units
- May 13 Purchased 1,500 units @ $12 cost per unit
- May 18 Sold 1,200 units
- May 21 Purchased 1,000 units @ $18 cost per unit
- May 22 Purchased 800 units @ $25 cost per unit
- May 28 Sold 1,400 units
- May 30 Purchased 700 units @ $10 cost per unit
During May, ABC Company reported operating expenses of $15,000 and had an income tax rate of 30%.
Required:
Question: Calculate the amount of net income reported on ABC Company's income statement for May using the FIFO method. Do not use decimals in your answer.
Note: Please provide through step by step calculations.