The Bradley Corporation produces a product with the following costs as of July 1, 20X1: Material.....................$4 per

Question:

The Bradley Corporation produces a product with the following costs as of July 1, 20X1:

Material.....................$4 per unit

Labor......................... 4 per unit

Overhead .................... 2 per unit

Beginning inventory at these costs on July 1 was 3,250 units. From July 1 to December 1, 20X1, Bradley produced 12,500 units. These units had a material cost of $5, labor of $4, and overhead of $5 per unit. Bradley uses LIFO inventory accounting.

Assuming that Bradley sold 14,000 units during the last six months of the year at $19 each, what is its gross profit? What is the value of ending inventory?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...