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Question - Cox Corporation produces a product with the following costs as of July 1, EOXX:
Material $5 per unit
Labour 7 per unit
Overhead 5 per unit
Assuming Cox sold 24,000 units during the last six months of the year at $25 each, beginning inventory at these costs on July 1 was 7,000 units. From July 1 to December 31, 20XY, Cox produced 18,000 units. These units had a material cost of $6 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?
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