Question
Cox Corporation produces a product with the following costs as of July 1, 20XX: Material $ 4 per unit Labour 2 per unit Overhead 2
Cox Corporation produces a product with the following costs as of July 1, 20XX:
Material | $ | 4 | per unit |
Labour | 2 | per unit | |
Overhead | 2 | per unit | |
Assuming Cox sold 14,600 units during the last six months of the year at $14 each, beginning inventory at these costs on July 1 was 3,400 units. From July 1 to December 31, 20XY, Cox produced 12,800 units. These units had a material cost of $2 per unit. The costs for labour and overhead were the same. (Round your intermediate values to 2 decimal places and final answer to the nearest whole dollars.)
a. Assumed Cox Corportation used average cost inventory accounting, what would gross profit be?
Gross profit $
b. Assumed Cox Corportation used average cost inventory accounting, what is the value of ending inventory?
Ending inventory $
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