LIFO liquidation in an interim reporting period 1. Assume that our records include the following two LIFO inventory cost pools: Unit Cost/Uni 600 $20 BOQ Purchase $30 800 1,400 At the beginning of the quarter (BOQ), we report 600 units on hand at a cost of $20 per unit. During the quarter, we sell 1,000 units at $60/unit for cash. Assume that we expect to increase our quantities of inventories on hand by year-end by the purchase of inventories at a cost of $40. a. Compute the gross profit we should recognize on the sales during the quarter. Gross Profit $ b. Prepare the required journal entries to record the sales. General Journal Description Debit Credit c. What adjusting entry will be required at year-end if the planned replacement of the inventories does not occur? General Journal Description Debit Credit