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Wooster Company imports and sells a product produced in Canada. In the summer of 2021, a natural disaster disrupted production, affecting its supply of product.
Wooster Company imports and sells a product produced in Canada. In the summer of 2021, a natural disaster disrupted production, affecting its supply of product. On January 1, 2021, Wooster's inventory records were as follows: Year purchased Quantity (units) Cost per unit Total cost 2019 5,000 $150 $750,000 2020 10,000 $200 2,000,000 Total 15,000 $2,750,000 Through the mid-December of 2021, purchases were limited to 14,000 units, because the cost had increased to $300 per unit. Wooster sold 18,000 units during 2021 at a price of $400 per unit, which significantly depleted its inventory. Assume that Wooster makes no further purchases during 2021. Wooster uses the LIFO inventory method. Compute Wooster's gross profit for 2021. Select one: o A. $2,200,000 o B. $1,800,000 O C. $3,600,000 o D. $3,550,000
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