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Cox Corporation produces a product with the following costs as of July 1, 20XX:
Material$3 per unit Labour5 per unit Overhead3 per unit
Assuming Cox sold 30,000 units during the last six months of the year at $15 each, beginning inventory at these costs on July 1 was 10,000 units. From July 1 to December 31, 20XY, Cox produced 24,000 units. These units had a material cost of $4 per unit. The costs for labour and overhead were the same.
a. If Cox uses FIFO inventory accounting, what would be the gross profit for the period?
Gross profit $
b. If Cox uses FIFO inventory accounting, What is the value of ending inventory?
Ending inventory $
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