Cork Company imports and sells a product produced in Canada. In the summer of 2019, a natural disaster disrupted production, affecting its supply of product. Cork uses the LIFO inventory method. On January 1, 2019, Cork's inventory records were as follows:

Through mid-December of 2019, purchases were limited to 8,000 units, because the cost had increased to $80 per unit. Cork sold 14,200 units during 2019 at a price of $102 per unit, which significantly depleted its inventory.
Assume that Cork makes no further purchases during 2019. Compute Cork's gross profit for 2019.

Question

Cork Company imports and sells a product produced in Canada. In the summer of 2019, a natural disaster disrupted production, affecting its supply of product. Cork uses the LIFO inventory method. On January 1, 2019, Cork's inventory records were as follows:

Through mid-December of 2019, purchases were limited to 8,000 units, because the cost had increased to $80 per unit. Cork sold 14,200 units during 2019 at a price of $102 per unit, which significantly depleted its inventory.
Assume that Cork makes no further purchases during 2019. Compute Cork's gross profit for 2019.

Quizplus · Accepted Answer

The Answer of Cork Company imports and sells a product produced in Canada. In the summer of 2019, a natural disaster disrupted production, affecting its supply of product. Cork uses the LIFO inventory method. On January 1, 2019, Cork's inventory records were as follows:

Through mid-December of 2019, purchases were limited to 8,000 units, because the cost had increased to $80 per unit. Cork sold 14,200 units during 2019 at a price of $102 per unit, which significantly depleted its inventory.
Assume that Cork makes no further purchases during 2019. Compute Cork's gross profit for 2019.

Cork Company Imports and Sells a Product Produced in Canada