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i am not sure if my answers are correct. Modern Day Appliances, Inc. is a wholesaler of kitchen appliances. The company uses a periodic inventory
i am not sure if my answers are correct.
Modern Day Appliances, Inc. is a wholesaler of kitchen appliances. The company uses a periodic inventory system and the LIFO cost method. Modern Day's December 31, 2021, fiscal year-end inventory of its main product, double-door stainless steel refrigerators, consisted of the following (listed in chronological order of acquisition): The replacement cost of the refrigerators throughout 2022 was $900. Modern Day sold 5,000 of these refrigerators during 2022 . The company's selling price throughout 2022 was $1,200. Required: 1. Compute the gross profit (sales minus cost of goods sold) and the gross profit ratio for 2022 assuming that Modern Day purchased 5,200 units during the year. 2. Repeat requirement 1 assuming that Modern Day purchased only 4,500 units. 3. For requirements 1 and 2 , what amount of before-tax LIFO liquidation profit or loss would Modern Day report in its 2022 disclosure notes, if any, assuming any calculated amount is materialStep by Step Solution
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