Nichols Company had 400 units of "Dink" in its inventory at a cost of $12 each. It purchased 600 more units of "Dink" at a cost of $18 each. Nichols then sold 700 units at a selling price of $30 each. The LIFO liquidation overstated normal gross profit by
A) $ -0-
B) $ 600.
C) $1,200.
D) $1,800.

Question

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The Answer of Nichols Company had 400 units of "Dink" in its inventory at a cost of $12 each. It purchased 600 more units of "Dink" at a cost of $18 each. Nichols then sold 700 units at a selling price of $30 each. The LIFO liquidation overstated normal gross profit by
A) $ -0-
B) $ 600.
C) $1,200.
D) $1,800.

Nichols Company Had 400 Units of "Dink" in Its Inventory