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Beginning inventory at these costs on July 1 was 3,000 units. From July 1 to Dec

ID: 2649706 • Letter: B

Question

      Beginning inventory at these costs on July 1 was 3,000 units. From July 1 to December 1, 2011, Bradley produced 12,000 units. These units had a material cost of $3, labor of $5, and overhead of $3 per unit. Bradley uses LIFO inventory accounting.

Assuming that Bradley sold 13,000 units during the last six months of the year at $16 each, what would gross profit be? (Omit the "$" sign in your response.)

What is the value of ending inventory?

he Bradley Corporation produces a product with the following costs as of July 1, 2011:

Explanation / Answer

Units Rate/unit in $ Value in $ Opening Inventory 3000 8 24000 Production from July-Dec 2011 12000 11 132000 Total units available for sale 15000 156000 a) Sales 13000 16 208000 Cost of goods sold 12000 11 132000 (Last In First Out) 1000 8 8000 13000 140000 Gross profit (Sales- COGS) 68000 b) Ending value of inventory 15000 - 13000= 2000 8 16000

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