3-Analysis of gross profit During 20 on sales, compared with the rate it has averaged in recent years. You are asked to deterror proft 17, King's Drug Company experienced a significant increase in the rate of gross most likely reason for this improvement. Support your answer The following data are from the records of the company: 2017 sales (at an average price of $50 a unit) were $2,300,000. 2017 purchases (at an average The company uses the LIFO inventory method and has used it since 1988. cost of $30 a unit) were $1,200,000. nventory cut-off. Vogts Company sells TVs. The perpetual inventory was stated as $38,500 on the books at December 31, 2017. At the close of the year, a new approach for compiling inventory was used and apparently a satisfactory cut-off for preparation of financial statements was not made. Some events that occurred are as follows 1 TVs shipped to a customer January 2, 2018, costing $5,000 were included in inventory at December 31, 2017. The sale was recorded in 2018. 2 TVs costing $15,000 received December 30, 2017, were recorded as received on January 2, 2018 3 TVs received during 2017 costing $4,600 were recorded twice in the inventory account. 4 TVs shipped to a customer December 28, 2017, f.o.b. Shipping point, which cost $10,000, were not received by the customer until January, 2018. The TVs were included in the ending inventory TVs on hand that cost $6,100 were never recorded on the books. 5 Instructions Compute the correct inventory at December 31, 2017