Jackson Specialties has been in business for more than 50 years. The company maintains a perpetual inventory system, uses a LIFO flow assumption, and ends its fiscal year at December 31. At year-end, the cost of goods sold and inventory are adjusted to reflect periodic LIFO costing procedures. A railroad strike has delayed the arrival of purchases ordered during the past several months of 2021, and Jackson Specialties has not been able to replenish its inventories as merchandise is sold. At Decimber 22, one product appears in the company's perpetual inventory records at the following unit costs. Jackson Specialties has another 8,000 units of this product on order at the current wholesale cost of $30 per unit. Because of the railroad strike, however, these units have not yet arrived (the terms of purchase are F.O. B. destination, so these units may not be added to Jackson's inventory until they arrive). Jackson Specialties also has an order from a customer who wants to purchase 4,000 units of this product at the retail sales price of $47 per unit. Jackson Specialties intends to make this sale on December 30 , regardless of whether the 8,000 units on order arrive by this date. A- Since the company is using the LIFO method to value its inventory, every time the new stock is purchased sold and left the quantity would be the oldest. LIFO is an asset management and valuation method that assumes that assets being produced or acquired last are the ones used first but does not necessarily mean that the stock on hand is older stock. Thus the stock availability is the oldest B- Assuming that 8,000 units are currently on order, do not arrive until sometime the following year C. Option one, ending inventory will be valued at $154,000, whereas option two ending inventory will be valued at 6000 D- The gross profit in option one is $6000 which is lower than the gross profit of $160,000 in option two. Thus it is advisable not to delay the sale and to try to complete the sale before the goods have arrived in order to book a higher gross profit in the current year. Jackson Specialties has been in business for more than 50 years. The company maintains a perpetual inventory system, uses a LIFO flow assumption, and ends its fiscal year at December 31. At year-end, the cost of goods sold and inventory are adjusted to reflect periodic LIFO costing procedures. A railroad strike has delayed the arrival of purchases ordered during the past several months of 2021, and Jackson Specialties has not been able to replenish its inventories as merchandise is sold. At Decimber 22, one product appears in the company's perpetual inventory records at the following unit costs. Jackson Specialties has another 8,000 units of this product on order at the current wholesale cost of $30 per unit. Because of the railroad strike, however, these units have not yet arrived (the terms of purchase are F.O. B. destination, so these units may not be added to Jackson's inventory until they arrive). Jackson Specialties also has an order from a customer who wants to purchase 4,000 units of this product at the retail sales price of $47 per unit. Jackson Specialties intends to make this sale on December 30 , regardless of whether the 8,000 units on order arrive by this date. A- Since the company is using the LIFO method to value its inventory, every time the new stock is purchased sold and left the quantity would be the oldest. LIFO is an asset management and valuation method that assumes that assets being produced or acquired last are the ones used first but does not necessarily mean that the stock on hand is older stock. Thus the stock availability is the oldest B- Assuming that 8,000 units are currently on order, do not arrive until sometime the following year C. Option one, ending inventory will be valued at $154,000, whereas option two ending inventory will be valued at 6000 D- The gross profit in option one is $6000 which is lower than the gross profit of $160,000 in option two. Thus it is advisable not to delay the sale and to try to complete the sale before the goods have arrived in order to book a higher gross profit in the current year