# Cast Iron Grills, Inc., manufactures premium gas barbecue grills. The company uses a periodic inventory system...

###### Question:

Cast Iron Grills, Inc., manufactures premium gas barbecue grills. The company uses a periodic inventory system and the LIFO cost method for its grill inventory. Cast Iron's December 31, 2018, fiscal year-end inventory consisted of the following (listed in chronological order of acquisition):

 Units Unit Cost 8,800 $600 5,900 700 9,800 800 The replacement cost of the grills throughout 2019 was$900. Cast Iron sold 46,000 grills during 2019. The company's selling price is set at 200% of the current replacement cost.

Required: 1. & 2. Compute the gross profit (sales minus cost of goods sold) and the gross profit ratio for 2019 under two different assumptions. First, that Cast Iron purchased 47,000 units and, second, that Cast Iron purchased 24,500 units during the year.
4. Compute the gross profit (sales minus cost of goods sold) and the gross profit ratio for 2019 assuming that Cast Iron purchased 47,000 units (as per the first assumption) and 24,500 units (as per the second assumption) during the year and uses the FIFO inventory cost method rather than the LIFO method.

#### Similar Solved Questions

##### A wooden artifact is found to have a 14C activity of 6.1 disintegrations per second. Given...
A wooden artifact is found to have a 14C activity of 6.1 disintegrations per second. Given that the 14C activity of an equal mass of fresh-cut wood has a constant value of 15.2 disintegrations per second, determine the age (years) of the artifact. The half-life of carbon-14 is 5715 years....
##### A mountain biker encounters a jump on a race course that sends him into the air...
A mountain biker encounters a jump on a race course that sends him into the air at 60o to the horizontal. If he lands at a horizontal distance of 46.0 m and 19.0 m below his launch point, what is his initial speed (in m/s)? m/s...
##### Could you solve these two questions, please Describe the relationship between the following two molecules: Br...
could you solve these two questions, please Describe the relationship between the following two molecules: Br t-Bu t-Burth HOYH HXXE Identical molecules Enantiomers Diastereomers Constitutional isomers Conformational isomers Submit Answer Tries 0/1 Describe the relationship between the following two...