Question

Beginning inventory at these costs on July 1 was 4,150 units. From July 1 to December 1, 20X1, Bradley Corporation produced 14,300 units. These units had a material cost of $5, labor of $4, and overhead of $5 per unit. Bradley uses LIFO inventory accounting. a. Assuming that Bradley Corporation sold 17,600 units during the last six months of the year at $19 each, what is its gross profit

Answer 1

Bradley Corporation

Gross profit is $88,000

Step-by-step explanation:

a) Data and Calculations:

Material cost = $5

Labor cost = 4

Overhead cost = 5

Total unit cost = $14

Inventory Sheet

Date Description Units Unit Price Total

July 1 Beginning inventory 4,150 $14 $58,100

Dec 1 Production 14,300 $14 200,200

Cost of goods available for sale 18,450 $14 $258,300

Cost of goods sold 17,600 $14 246,400

Dec. 31 Ending Inventory 850 $14 $11,900

Calculation of the gross profit:

Sales revenue = 17,600 * $19 = $334,400

Cost of goods sold 17,600 * $14 246,400

Gross profit 17,600 * $5 $88,000