Chapter 7 Inventories: Cost Measurement and Flow Assumptions Alternative Inventory Methods Habicht Company was formed in 2018 to produce a single product. The pro- duction and sales for the next 4 years were as follows: Production Sales Total Sales Units in Ending Units Costs Units Revenue Inventory 2018 100,000 $200,000 80,000 $400,000 20,000 2019 120,000 234,000 110,000 550,000 30,000 2020 130,000 247,000 150,000 750,000 10,000 2021 130,000 240,500 120,000 600,000 20,000 Required: 1. Determine the gross profit for each year under each of the following periodic inventory methods: 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. a