"10. On December 31 of last year, Barton Air Filters had in inventory 600 units of its product,which costs $28 per unit to produce. During January, the company produced 1,200 units ata cost of $32 per unit. Assuming Barton Air Filters sold 1,500 units in January, what wasthe cost of goods sold (assume FIFO inventory accounting)?4-10. Solution:Barton Air Filters Cost of goods sold on 1,500 unitsOld inventory:Quantity (Units) ......................................600 Cost per unit ............................................$28 Total ........................................................$ 16,800 New inventory:Quantity (Units) ......................................900 Cost per unit ............................................$ 32 Total $28,800 Total Cost of Goods Sold ..........................$45,600S4-8 11. On December 31 of last year, Wolfson Corporation had in inventory 400 units of itsproduct, which cost $21 per unit to produce. During January, the company produced 800 units at a cost of $24 per unit. Assuming that Wolfson Corporation sold 700 units inJanuary, what was the cost of goods sold (assume FIFO inventory accounting)?4-11. Solution:Wolfson CorporationCost of goods sold on 700 unitsOld inventory: Quantity (Units) ..............................400Cost per unit ...................................$ 21Total ................................................$8,400 New inventory: Quantity (Units) ..............................300Cost per unit ...................................$ 24Total $7,200Total Cost of Goods Sold .................$15,600S4-9 12. At the end of January, Lemon Auto Parts had an inventory of 825 units, which cost $12 perunit to produce. During February the company produced 750 units at a cost of $16 per unit.If the firm sold 1,050 units in February, what was its cost of goods sold?a. Assume LIFO inventory accounting.b. Assume FIFO inventory accounting.4-12. Solution:Lemon Auto Partsa. LIFO AccountingCost of goods sold on 1,050 units New inventory: Quantity (Units) .....................................750Cost per unit ..........................................$ 16Total .......................................................$12,000Old inventory: Quantity (Units) .....................................300Cost per unit ..........................................$ 12Total $3,600Total Cost of Goods Sold ........................$15,600b. FIFO AccountingCost of goods sold on 1,050 units Old inventory: Quantity (Units) .....................................825Cost per unit ..........................................$ 12Total .......................................................$9,900New inventory: Quantity (Units) .....................................225Cost per unit ..........................................$ 16Total $3,600Total Cost of Goods Sold ........................$13,500S4-10 13. Convex Mechanical Supplies produces a product with the following costs as of July 1, 2009:Material $ 6Labor 4Overhead 2 $12Beginning inventory at these costs on July 1 was 5,000 units. From July 1 to December 1,Convex produced 15,000 units. These units had a material cost of $10 per unit. The costsfor labor and overhead were the same. Convex uses FIFO inventory accounting.Assuming that Convex sold 17,000 units during the last six months of the year at $20 each,what would gross profit be? What is the value of ending inventory?4-13. Solution:Convex Mechanical Supplies Sales (17,000 @ $20) $340,000 Cost of goods sold:Old inventory:Quantity (units) ..................5,000 Cost per unit ......................$12 Total ..................................... $60,000New inventory:Quantity (units) ..................12,000 Cost per unit ......................$16 Total ..................................... $192,000Total cost of goods sold .....................................$252,000 Gross profit ..........................$88,000S4-11 4-13. (Continued) Value of endinginventory: Beginning inventory$60,000(5,000 × $12) .....................+ Total production$240,000(15,000 × $16) ...................Total inventory available for sale ................ $300,000 – Cost of good sold .............. $252,000Ending inventory ................. $48,000Or 3,000 units × $16 = $48,000S4-12 "