Cox Corporation produces a product with the following costs as of July 1, 2014: Material.................$2 per unit

Question:

Cox Corporation produces a product with the following costs as of July 1, 2014:
Material.................$2 per unit
Labour....................4 per unit
Overhead...............2 per unit

Assuming Cox sold 13,000 units during the last six months of the year at $16 each, beginning inventory at these costs on July 1 was 3,000 units. From July 1 to December 31 , 2015, Cox produced 12,000 units. These units had a material cost of $3 per unit. The costs for labour and overhead were the same. If Cox uses FIFO inventory accounting, what would gross profit be? What is the value of ending inventory?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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