Question

Beginning inventory at these costs on July 1 was 4,150 units. From July 1 to December 1, 20X1, Bradley Corporation produced 14,300 units. These units had a material cost of $5, labor of $4, and overhead of $5 per unit. Bradley uses LIFO inventory accounting. a. Assuming that Bradley Corporation sold 17,600 units during the last six months of the year at $19 each, what is its gross profit

Answer 1

Answer:

Bradley Corporation

Gross profit is $88,000

Explanation:

a) Data and Calculations:

Material cost =     $5

Labor cost =           4

Overhead cost =    5

Total unit cost = $14

Inventory Sheet

Date     Description                       Units    Unit Price Total

July 1   Beginning inventory           4,150     $14     $58,100

Dec 1   Production                        14,300     $14    200,200

Cost of goods available for sale 18,450     $14  $258,300

Cost of goods sold                      17,600     $14    246,400

Dec. 31 Ending Inventory                850      $14     $11,900

Calculation of the gross profit:

Sales revenue = 17,600 * $19 = $334,400

Cost of goods sold 17,600 * $14 246,400

Gross profit            17,600 * $5   $88,000