Question

cast iron grills Incorporated manufactures premium gas barbecue grills. a company reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. Cast irons December 31st 2021 fiscal year end inventory consisted of the following listed in chronicle logical order of acquisition:
8200 units.          unit cost $700
5600.                                         800
9200.                                          900

the replacement cost of the grills throughout 2022 was $1,000. Cast iron sold 43,000 grills during 2022. The company selling price is set at 200% of the current replacement cost.
required compute the gross profit sales Minus cost of goods sold and the gross profit ratio for 2020 two under two different assumptions. First that cast-iron purchase 44000 units and second the cast-iron purchase 23000 units during the year. okay then the next you're going to compute the gross profit and the gross profit ratio for 2022 assuming that cast-iron purchased 44000 and 23,000 units using FIFO METHOD instead of LIFO.

Answer 1