Compute the amount of gross margin under FIFO that LIFO supporters would call inventory, or paper,…

Following are inventory data for Kintech Company:

January 1 inventory on hand, 400 units at USD 28.80.

January sales were 80 units.

February sales totaled 120 units.

March 1, purchased 200 units at USD 30.24.

Sales for March through August were 160 units.

September 1, purchased 40 units at USD 33.12.

September through December sales were 180 units.

A company purchased 1,000 units of a product at USD 12.00 and 2,000 units at USD 13.20. It sold all of these units at USD 18.00 each at a time when the current cost to replace the units sold was USD 13.80. Compute the amount of gross margin under FIFO that LIFO supporters would call inventory, or paper, profits.

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