Bradley Corporation COST FOR JULY, 201X Units Sold 13,000 Material $2 Price per

Question

Bradley Corporation COST FOR JULY, 201X Units Sold 13,000 Material $2 Price per Unit $16 Labor $4 Beginning Inventory 3,000 Overhead $2 Units Produced 12,000 $8 Cost July-Dec. $11 Solution: Sales Value of Ending Inventory: Cost of goods sold: Beginning Inventory Old Inventory: FIFO Total Production      Quantity (Units) Total Inventory available for sale      Cost per Unit Cost of goods sold Total Ending Inventory New Inventory:      Quantity (Units)      Cost per unit Total Total Cost of Goods Sold: Gross Profit

Explanation / Answer

Beginning inventory $24,000 (3,000 units@$8) Add Units Produced 96,000 ($2 material +$4 labor +$2 O/H= $8* 12,000) Inventory available for sale $120,000 Less: Units sold 104,000 (13,000 units @$8) Ending (new)inventory $16,000 (2,000 units @$8) Sales $208,000 (13,000*$16) Cost of Goods Sold 104,000 (13,000*$8) Gross Profit $104,000 Cost per unit $8 ($2 material, $4 labor $2 overhead)

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