Blue Company reported the following information in its financial statements. Blue Company (FIFO) $millionsSalesCOGSInventories2021$60,000$45,000$15,000202052,00036,00013,000The LIFO reserve for Blue Company is $2,760 at the end of 2020 and $2,500 at the end of 2021.What is the 2021 gross profit for Blue Company, assuming Blue Company had used LIFO?Select one:a. $14,740b. $15,740c. $14,260d. $15,000e. $15,260

Formula: Gross profit = Sales - cost of Goods sold Deduction of cost of goods sold from sales value…

Answered: Blue Company reported the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Blue Company reported the following information in its financial statements.

	Blue Company (FIFO)
$millions	Sales	COGS	Inventories
2021	$60,000	$45,000	$15,000
2020	52,000	36,000	13,000

The LIFO reserve for Blue Company is $2,760 at the end of 2020 and $2,500 at the end of 2021.
What is the 2021 gross profit for Blue Company, assuming Blue Company had used LIFO?

Select one:

a. $14,740

b. $15,740

c. $14,260

d. $15,000

e. $15,260

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