Sprint Shoes Inc. had a beginning inventory of 9,250 units on January 1, 20X1. The costs associated with the inventory were: The Sprint Shoes Inc. produces a product with the following costs as of July 1, 20X1: Material $15.00 per unit Labor 8.00 per unit Overhead 7.10 per unit During 20X1, the firm produced 43,000 units with the following costs: Material $17.50 per unit Labor 8.80 per unit Overhead 10.30 per unit Sales for the year were 47,350 units at $44.60 each. Sprint Shoes uses LIFO accounting. a. What was the gross profit? b. What was the value of ending inventory?
Sprint Shoes Inc. had a beginning inventory of 9,250 units on January 1, 20X1. The costs associated with the inventory were: The Sprint Shoes Inc. produces a product with the following costs as of July 1, 20X1: Material $15.00 per unit Labor 8.00 per unit Overhead 7.10 per unit During 20X1, the firm produced 43,000 units with the following costs: Material $17.50 per unit Labor 8.80 per unit Overhead 10.30 per unit Sales for the year were 47,350 units at $44.60 each. Sprint Shoes uses LIFO accounting. a. What was the gross profit? b. What was the value of ending inventory?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sprint Shoes Inc. had a beginning inventory of 9,250 units on January 1, 20X1. The costs associated with the inventory were:
The Sprint Shoes Inc. produces a product with the following costs as of July 1, 20X1:
| Material | $15.00 per unit |
| Labor | 8.00 per unit |
| 7.10 per unit | |
During 20X1, the firm produced 43,000 units with the following costs:
| Material | $17.50 per unit |
| Labor | 8.80 per unit |
| Overhead | 10.30 per unit |
Sales for the year were 47,350 units at $44.60 each. Sprint Shoes uses LIFO accounting.
a. What was the gross profit?
b. What was the value of ending inventory?
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