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Storm Rainwear imports and sells products produced in Florida. In the summer of 2020, the producer's plant was damaged by flooding, disrupting production and affecting
Storm Rainwear imports and sells products produced in Florida. In the summer of 2020, the producer's plant was damaged by flooding, disrupting production and affecting Storm's supply of product. Storm uses the LIFO inventory method. On January 1, 2021, Storm's inventory records were as follows: Year purchased 2019 $ 2020 Total Quantity (units) 22,000 5,000 27,000 Cost per unit Saved $60 $85 Total cost $1,320,000 425,000 Through mid-December of 2021, new purchases for the year were limited to 40,000 units, because the cost had increased to $100 per unit. Storm sold 50,000 units during 2021, at a selling price of $200 per unit, which significantly depleted its inventory. Question 18 (4 points) If Storm makes no further purchases during 2021, what is Storm's gross profit for 2021? $1,745,000
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