Solution-What would be the gross profit for the period

What would be the gross profit for the period

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Problem: Cox Corporation produces with the following costs as of July 1, 20XX.

Material $3 per unit

Labour $5 per unit

Overhead $3 per unit

Assuming Cox sold 31,000 units during the last six months of the year at $16 each, beginning inventory at these costs on July 1 was 3,000 units. From July 1 to December 31, 20XY, Cox produced 30,000 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?

b) If Cox uses FIFO inventory accounting, what is the value of ending inventory?

Reference no: EM132466894

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What would be the gross profit for the period

Reference no: EM132466894

Reference no: EM132466894

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