FIFO Calcuating Gross Profit and Ending Inventory
Bradley Corp produces a product with the following costs as of July 1, 2007:
Material: $2 per unit; Labor $4 per unit: Overhead: $2 per unit
Beginnning inventory: at these costs on July 1st, was 3000 units.
From July 1 - Dec 1, 2007, Bradley produced 13,000 units.
These units had: Material: $3 per unit; Labor $5 per unit: Overhead: $3 per unit.
Bradley uses FIFO inventory accounting.
Assuming that Bradley sold 13,000 units during the last six months of the year @ $16 each,
What is the gross profit?
What is the value of the ending inventory?