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Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1: $ 5 3 Material Labor Overhead Beginning Inventory at these costs on July 1 was 7,900 units. From July 1 to December 1, Convex produced 20,000 units. These units had a material cost of $7 per unit. The costs for labor and overhead were the same. Convex uses FIFO Inventory accounting. 2 $ 10 a. Assuming that Convex sold 22,000 units during the last six months of the year at $14 each, what would gross profit be? Gross profit b. What is the value of ending inventory? Ending inventory

Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1: $ 5 3 Material Labor Overhead Beginning Inventory at these costs on July 1 was 7,900 units. From July 1 to December 1, Convex produced 20,000 units. These units had a material cost of $7 per unit. The costs for labor and overhead were the same. Convex uses FIFO Inventory accounting. 2 $ 10 a. Assuming that Convex sold 22,000 units during the last six months of the year at $14 each, what would gross profit be? Gross profit b. What is the value of ending inventory? Ending inventory

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1: Material Labor Overhead Beginning inventory at these costs on July 1 was 7,900 units. From July 1 to December 1, Convex produced 20,000 units. These units had a material cost of $7 per unit. The costs for labor and overhead were the same. Convex uses FIFO Inventory accounting. $5 3 2 $ 10 a. Assuming that Convex sold 22,000 units during the last six months of the year at $14 each, what would gross profit be? Gross profit b. What is the value of ending Inventory? Ending inventory
Transcribed Image Text:Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1: Material Labor Overhead Beginning inventory at these costs on July 1 was 7,900 units. From July 1 to December 1, Convex produced 20,000 units. These units had a material cost of $7 per unit. The costs for labor and overhead were the same. Convex uses FIFO Inventory accounting. $5 3 2 $ 10 a. Assuming that Convex sold 22,000 units during the last six months of the year at $14 each, what would gross profit be? Gross profit b. What is the value of ending Inventory? Ending inventory
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