Solution-Computing the gross profit of convex mechanical

Computing the gross profit of convex mechanical

Reference no: EM132484220

Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1:

Material $4

Labor 2

Overhead 1

Beginning inventory at these costs on July 1 was 5,200 units. From July 1 to December 1, Convex produced 15,500 units. These units had a material cost of $9 per unit. The costs for labor and overhead were the same. Convex uses FIFO inventory accounting.

a. Assuming that Convex sold 17,500 units during the last six months of the year at $18 each, what would gross profit be?

Gross profit =

b. What is the value of ending inventory?

Ending inventory =

Reference no: EM132484220

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Computing the gross profit of convex mechanical

Reference no: EM132484220

Reference no: EM132484220

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