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Fx9-M6q Company employs a periodic inventory system and sells its inventory to customers for $34 per unit. Fx9-M6q Company had the following inventory information available for the month of April:
April 1 Beginning inventory 3,560 units @ $18.30 cost per unit April 3 Sold 1,310 unitsApril 9 Purchased 1,740 units @ $11.10 cost per unitApril 18 Sold 1,580 unitsApril 20 Purchased 1,970 units @ $22.80 cost per unitApril 24 Sold 1,840 unitsApril 27 Purchased 1,680 units @ $21.30 cost per unit
Fx9-M6q Company uses the LIFO inventory cost flow assumption.
Question 1: Calculate the amount of gross profit reported on Fx9-M6q Company's income statement for April.
Comment on the legal and ethical issues involved in skimming. If you were aware of this activity on your business, how would you address it?
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