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Timber Company imports and sells a product produced in Canada. In the summer of 2019, a natural disaster disrupted production, affecting its supply of product. Timber Company uses the LIFO inventory method. On January 1, 2019, Timber Company's inventory records were as follows: Year purchased 2017 2018 Total Quantity (units) 2,000 5.000 7.000 Cost per unit $120 $165 Total cost $240,000 825,000 $1.065.000 Through mid-December of 2019, purchases were limited to 8,000 units, because the cost had increased to $240 per unit. Timber sold 14,200 units during 2019 at a price of $306 per unit, which significantly depleted its inventory. Timber Company uses a periodic inventory system. Assume that Timber Company makes no further purchases during 2019. Compute Timber Company's gross profit for 2019. $ 321,800 $3,109,800 $3,741,000 $1,456,200

Timber Company imports and sells a product produced in Canada. In the summer of 2019, a natural disaster disrupted production, affecting its supply of product. Timber Company uses the LIFO inventory method. On January 1, 2019, Timber Company's inventory records were as follows: Year purchased 2017 2018 Total Quantity (units) 2,000 5.000 7.000 Cost per unit $120 $165 Total cost $240,000 825,000 $1.065.000 Through mid-December of 2019, purchases were limited to 8,000 units, because the cost had increased to $240 per unit. Timber sold 14,200 units during 2019 at a price of $306 per unit, which significantly depleted its inventory. Timber Company uses a periodic inventory system. Assume that Timber Company makes no further purchases during 2019. Compute Timber Company's gross profit for 2019. $ 321,800 $3,109,800 $3,741,000 $1,456,200

FINANCIAL ACCOUNTING
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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Timber Company imports and sells a product produced in Canada. In the summer of 2019, a natural disaster disrupted production, affecting its supply of product. Timber Company uses the LIFO inventory method. On January 1, 2019, Timber Company's inventory records were as follows: Year purchased 2017 2018 Total Quantity (units) 2,000 5,000 700 Cost per unit $120 $165 Total cost $240,000 825,000 $1,065,000 Through mid-December of 2019, purchases were limited to 8,000 units, because the cost had increased to $240 per unit. Timber sold 14,200 units during 2019 at a price of $306 per unit, which significantly depleted its inventory. Timber Company uses a periodic inventory system. Assume that Timber Company makes no further purchases during 2019. Compute Timber Company's gross profit for 2019. $ 321,800 $3,109,800 $3,741,000 $1,456,200
Transcribed Image Text:Timber Company imports and sells a product produced in Canada. In the summer of 2019, a natural disaster disrupted production, affecting its supply of product. Timber Company uses the LIFO inventory method. On January 1, 2019, Timber Company's inventory records were as follows: Year purchased 2017 2018 Total Quantity (units) 2,000 5,000 700 Cost per unit $120 $165 Total cost $240,000 825,000 $1,065,000 Through mid-December of 2019, purchases were limited to 8,000 units, because the cost had increased to $240 per unit. Timber sold 14,200 units during 2019 at a price of $306 per unit, which significantly depleted its inventory. Timber Company uses a periodic inventory system. Assume that Timber Company makes no further purchases during 2019. Compute Timber Company's gross profit for 2019. $ 321,800 $3,109,800 $3,741,000 $1,456,200
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