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Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1: Material $ 6 Labor 4 Overhead 3 $ 13 Beginning inventory at these costs on July 1 was 12,100 units. From July 1 to December 1, Convex produced 27,000 units. These units had a material cost of $10 per unit. The costs for labor and overhead were the same. Convex uses FIFO inventory accounting. Assuming that Convex sold 29,000 units during the last six months of the year at $20 each, what would gross profit be? What is the value of ending inventory?

Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1: Material $ 6 Labor 4 Overhead 3 $ 13 Beginning inventory at these costs on July 1 was 12,100 units. From July 1 to December 1, Convex produced 27,000 units. These units had a material cost of $10 per unit. The costs for labor and overhead were the same. Convex uses FIFO inventory accounting. Assuming that Convex sold 29,000 units during the last six months of the year at $20 each, what would gross profit be? What is the value of ending inventory?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1: Material $ 6 Labor 4 Overhead 3 $ 13 Beginning inventory at these costs on July 1 was 12,100 units. From July 1 to December 1, Convex produced 27,000 units. These units had a material cost of $10 per unit. The costs for labor and overhead were the same. Convex uses FIFO inventory accounting. Assuming that Convex sold 29,000 units during the last six months of the year at $20 each, what would gross profit be? What is the value of ending inventory?
Transcribed Image Text:Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1: Material $ 6 Labor 4 Overhead 3 $ 13 Beginning inventory at these costs on July 1 was 12,100 units. From July 1 to December 1, Convex produced 27,000 units. These units had a material cost of $10 per unit. The costs for labor and overhead were the same. Convex uses FIFO inventory accounting. Assuming that Convex sold 29,000 units during the last six months of the year at $20 each, what would gross profit be? What is the value of ending inventory?
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