Hi, I need help with understanding the formulas in order to calculate these missing blanks. I need help understanding this. Material $6 Labor 4 Overhead 2 $12 Beginning inventory at these costs on July 1 was 5,000 units. From July 1 to December 1, Convex produced 15,000 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 17,000 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 Sales Cost of goods sold: Old inventory: Quantity (units) Cost per unit Total FORMULA New inventory: Quantity (units) Cost per unit Total FORMULA Total cost of goods sold FORMULA Gross profit FORMULA Value of ending inventory: Beginning inventory FORMULA + Total production FORMULA Total inventory available for sale FORMULA – Cost of goods sold FORMULA Ending inventory FORMULA # Problem 4-14**Objective:** C.O.G.S., Gross profit and ending inventory- **Student Name:** [Blank]- **Course Name:** [Blank]- **Student ID:** [Blank]- **Course Number:** [Blank]Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1:- Material: $6- Labor: $4- Overhead: $2**Total:** $12Beginning inventory at these costs on July 1 was 5,000 units. From July 1 to December 1, Convex produced 15,000 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 17,000 units during the last six months of the year at $20 each, what would gross profit be? What is the value of ending inventory?---## Solution**Problem 4-14 Instructions**Enter cell references, data, and formulas to complete the table.### Convex Mechanical Supplies- **Sales:** [Blank]- **Cost of goods sold:** - **Old inventory:** - **Quantity (units):** [Blank] - **Cost per unit:** [Blank] - **Total:** FORMULA - **New inventory:** - **Quantity (units):** [Blank] - **Cost per unit:** [Blank] - **Total:** FORMULA- **Total cost of goods sold:** FORMULA- **Gross profit:** FORMULA**Value of ending inventory:**- **Beginning inventory:** FORMULA- **+ Total production:** FORMULA- **Total inventory available for sale:** FORMULA- **– Cost of goods sold:** FORMULA- **Ending inventory:** FORMULA**Note**: Cells highlighted in yellow are meant to be filled with appropriate data or results from formulas applied.

FIFO Method: Under this method, the ending inventory is valued at latest price and inventories are…

Answered: Convex Mechanical Supplies produces a…

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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Hi, I need help with understanding the formulas in order to calculate these missing blanks. I need help understanding this.



Material		$6
Labor		4
Overhead		2
		$12
Beginning inventory at these costs on July 1 was 5,000 units. From July 1 to December 1, Convex produced
15,000 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 17,000 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


Sales
Cost of goods sold:
Old inventory:
Quantity (units)
Cost per unit
Total	FORMULA
New inventory:
Quantity (units)
Cost per unit
Total	FORMULA
Total cost of goods sold		FORMULA
Gross profit		FORMULA

Value of ending inventory:
Beginning inventory	FORMULA
+ Total production	FORMULA
Total inventory available for sale	FORMULA
– Cost of goods sold	FORMULA
Ending inventory	FORMULA

# Problem 4-14

**Objective:** C.O.G.S., Gross profit and ending inventory

- **Student Name:** [Blank]
- **Course Name:** [Blank]
- **Student ID:** [Blank]
- **Course Number:** [Blank]

Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1:

- Material: $6
- Labor: $4
- Overhead: $2

**Total:** $12

Beginning inventory at these costs on July 1 was 5,000 units. From July 1 to December 1, Convex produced 15,000 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 17,000 units during the last six months of the year at $20 each, what would gross profit be? What is the value of ending inventory?

---

## Solution

**Problem 4-14 Instructions**

Enter cell references, data, and formulas to complete the table.

### Convex Mechanical Supplies

- **Sales:** [Blank]
- **Cost of goods sold:**
- **Old inventory:**
- **Quantity (units):** [Blank]
- **Cost per unit:** [Blank]
- **Total:** FORMULA
- **New inventory:**
- **Quantity (units):** [Blank]
- **Cost per unit:** [Blank]
- **Total:** FORMULA
- **Total cost of goods sold:** FORMULA
- **Gross profit:** FORMULA

**Value of ending inventory:**

- **Beginning inventory:** FORMULA
- **+ Total production:** FORMULA
- **Total inventory available for sale:** FORMULA
- **– Cost of goods sold:** FORMULA
- **Ending inventory:** FORMULA

**Note**: Cells highlighted in yellow are meant to be filled with appropriate data or results from formulas applied.

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