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Wonderland Company imports and sells a product produced in Canada. In the summer of 2016, a natural disaster disrupted production, affecting its supply of product. On January 1, 2016, Wonderland's inventory records were as follows:
Through mid-December of 2016, purchases were limited to16,000 units, because the cost had increased to $320 per unit. Wonderland sold 18,400 units during 2016 at a price of $392 per unit, which significantly depleted its inventory.
-Assume that Wonderland makes no further purchases during 2016. Wonderland uses the LIFO inventory method.
Compute Wonderland's gross profit for 2016.
A) $1,762,400
B) $1,564,800
C) $2,494,000
D) $1,714,400

Question

Use the following information for questions below: 
Wonderland Company imports and sells a product produced in Canada. In the summer of 2016, a natural disaster disrupted production, affecting its supply of product. On January 1, 2016, Wonderland's inventory records were as follows:
  Through mid-December of 2016, purchases were limited to16,000 units, because the cost had increased to $320 per unit. Wonderland sold 18,400 units during 2016 at a price of $392 per unit, which significantly depleted its inventory.
-Assume that Wonderland makes no further purchases during 2016. Wonderland uses the LIFO inventory method.
Compute Wonderland's gross profit for 2016.
A) $1,762,400 
B) $1,564,800 
C) $2,494,000 
D) $1,714,400

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