Snowmobile manufacturer uses LIFO and begins the year with an inventory of 3000 with a carrying cost of $4000 per unit. The company sells 2000 in January for $10,000 each. In July the company adds 4000 at $5000 each. What is the difference if the company uses a periodic system instead of a perpetual inventory inventory system?
1) Increase COGS by 2,000,000
2) Leave ending inventory unchanged
3) Decrease Gross Profit by 4,000,000