Habicht Company was formed in 2012 to produce a single product. The production and sales for the next 4 years were as follows:

Required:
1. Determine the gross profit for each year under each of the following periodic inventory methods:
a. FIFO
b. LIFO
c. Average cost (Round unit costs to 3 decimal places.)
2. Next Level Explain whether the company's return on assets (net income divided by average total assets) would be higher under FIFO or LIFO.

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Production Sales Total Costs Sales Revenue Units in Ending Inventory 20,000 30,000 10,000 20,000 Units Units 2012 2013 2014 2015 100,000 120,000 130,000 130,000 $200,000 234,000 247,000 240,500 80,000 110,000 150,000 120,000 $400,000 550,000 750,000 600,000