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31 December 2022, Ithaca Manufacturing had 3,000 units in its Finished Goods inventory. The balance sheet on December 31 indicated that these items had a
31 December 2022, Ithaca Manufacturing had 3,000 units in its Finished Goods inventory. The balance sheet on December 31 indicated that these items had a total dollar value of $87,345. During the first quarter of 2023, the company expects to sell 35,000 units at a price of $60/unit. During the same period, the estimated production is 38,000 units at a cost of $27/unit. What is the expected gross profit for the quarter if the company follows a FIFO method? [4 Marks]
31 December 2022, Ithaca Manufacturing had 3,000 units in its Finished Goods inventory. The balance sheet on December 31 indicated that these items had a total dollar value of $87,345. During the first quarter of 2023, the company expects to sell 35,000 units at a price of $60/unit. During the same period, the estimated production is 38,000 units at a cost of $27/unit. What is the expected gross profit for the quarter if the company follows a FIFO method? [4 Marks]
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