Tanner Company imports and sells a product produced in Canada. In the summer of Year 3, a natural disaster disrupted production, affecting its supply of product. Tanner Company uses the LIFO inventory method. On January 1, Year 3, Tanner Company's inventory records were as follows: Year purchased Quantity (units) Cost per unit Total cost Year 1 Year 2 Total 2,000 5,000 7,000 $120 $165 $240,000 825,000 $1,065,000 Through mid December of Year 3, purchases were limited to 8,000 units, because the cost had increased to $240 per unit. Tanner sold 14,200 units during Year 3 at a price of $306 per unit, which significantly depleted its inventory. Tanner Company uses a periodic inventory system. Assume that Tanner Company makes no further purchases during Year 3. Compute Tanner Company's gross profit for Year 3. Select one: O A. $321,800 O B. $1,456,200 O C$3,741,000 OD. $3,109,800

Tanner Company imports and sells a product produced in Canada. In the summer of Year 3, a natural disaster disrupted production, affecting its supply of product. Tanner Company uses the LIFO inventory method. On January 1, Year 3, Tanner Company's inventory records were as follows: Year purchased Quantity (units) Cost per unit Total cost Year 1 Year 2 Total 2,000 5,000 7,000 $120 $165 $240,000 825,000 $1,065,000 Through mid December of Year 3, purchases were limited to 8,000 units, because the cost had increased to $240 per unit. Tanner sold 14,200 units during Year 3 at a price of $306 per unit, which significantly depleted its inventory. Tanner Company uses a periodic inventory system. Assume that Tanner Company makes no further purchases during Year 3. Compute Tanner Company's gross profit for Year 3. Select one: O A. $321,800 O B. $1,456,200 O C$3,741,000 OD. $3,109,800

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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