Question
Sprint Shoes Inc. had a beginning inventory of 9,100 units on January 1, 20X1. The costs associated with the inventory were: Material $ 12.00 per
Sprint Shoes Inc. had a beginning inventory of 9,100 units on January 1, 20X1. The costs associated with the inventory were:
Material $ 12.00 per unit
Labor 7.00 per unit
Overhead 5.10 per unit
During 20X1, the firmproduced 42,700 units with the following costs:
Material $ 14.50 per unit
Labor 6.80 per unit
Overhead 7.30 per unit
Sales for the year were 47,290 units at $41.60 each. Sprint Shoesuses LIFO accounting.
a. What was the gross profit? (Do not round intermediate calculations.)
b. What was the value of ending inventory? (Do not round intermediate calculations.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started