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Walt Disney Co. produces a product with the following costs as of July 1, 20X1: Material $5 Labor 4 Overhead 2 =$11 Beginning inventory at
Walt Disney Co. produces a product with the following costs as of July 1, 20X1:
Material $5
Labor 4
Overhead 2
=$11
Beginning inventory at these costs on July 1 was 5,000 units. From July 1 to December 1, Walt Disney produced 13,000 units. These units had a material cost of $10 per unit. The costs for labor and overhead were the same. Walt Disney uses FIFO inventory accounting.
Assuming that Walt Disney sold 15,000 units during the last six months of the year at $20 each, what would gross profit be? What is the value of ending inventory?
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