Question
The Bradley Corporation produces a product with the following costs as of July 1, 20X1: Material $3 per unit Labor 3 per unit Overhead 1
The Bradley Corporation produces a product with the following costs as of July 1, 20X1:
| Material | $3 per unit |
| Labor | 3 per unit |
| Overhead | 1 per unit |
Beginning inventory at these costs on July 1 was 3,350 units. From July 1 to December 1, 20X1, Bradley produced 12,700 units. These units had a material cost of $2, labor of $4, and overhead of $2 per unit. Bradley uses LIFO inventory accounting.
a. Assuming that Bradley sold 14,400 units during the last six months of the year at $13 each, what is its gross profit?
b. What is the value of ending inventory?
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Auditing Concepts And Methods A Guide To Current Auditing Theory And Practice
Authors: Mcgraw-Hill
5th Edition
0070099995, 978-0070099999
