Foundations of Financial Management
Foundations of Financial Management
16th Edition
ISBN: 9781259277160
Author: Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Publisher: McGraw-Hill Education
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Chapter 4, Problem 15P

The Bradley Corporation produces a product with the following costs as of July 1, 20X1:

Chapter 4, Problem 15P, The Bradley Corporation produces a product with the following costs as of July 1, 20X1: Beginning

Beginning inventory at these costs on July 1 was 3,250 units. From July 1 to December 1, 20X1, Bradley produced 12,500 units. These units had a material cost of $5 , labor of $4 , and overhead of $5 per unit. Bradley uses LIFO inventory accounting.

Assuming that Bradley sold 14,000 units during the last six months of the year at $19 each, what is its gross profit? What is the value of ending inventory?

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