Question
The Bradley Corporation produces a product with the following costs as of July 1, 2014: Material $4 per unit Labor 2 per unit Overhead 2
The Bradley Corporation produces a product with the following costs as of July 1, 2014:
Material $4 per unit Labor 2 per unit Overhead 2 per unit
Beginning inventory at these costs on July 1 was 3,900 units. From July 1 to December 1, 2014, Bradley produced 13,800 units. These units had a material cost of $5, labor of $6, and overhead of $4 per unit. Bradley uses LIFO inventory accounting.
a. Assuming that Bradley sold 16,600 units during the last six months of the year at $20 each, what is its gross profit ?
Gross profit $
b. What is the value of ending inventory?
Ending inventory $
rev: 09_10_2015_QC_CS-24043
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