What is the value of ending inventory

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Question - Cox Corporation produces a product with the following costs as of July 1, 20XX:

Material $3 per unit

Labour 3 per unit

Overhead 1 per unit

Assuming Cox sold 14,400 units during the last six months of the year at $13 each, beginning inventory at these costs on July 1 was 3,350 units. From July 1 to December 31, 20XY, Cox produced 12,700 units. These units had a material cost of $2 per unit. The costs for labour and overhead were the same.

Required -

a. Assumed Cox Corportation used average cost inventory accounting, what would gross profit be?

b. Assumed Cox Corportation used average cost inventory accounting, what is the value of ending inventory?

Reference no: EM133135756

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