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Item 5

Problem 4-16 Gross profit and ending inventory [LO4-2]

Sprint Shoes Inc. had a beginning inventory of 9,450 units on January 1, 20X1. The costs associated with the inventory were:

Material	$ 14.00 per unit
Labor	9.00 per unit
Overhead	6.10 per unit

During 20X1, the firm produced 43,400 units with the following costs:

Material	$ 15.50 per unit
Labor	7.80 per unit
Overhead	8.30 per unit

Sales for the year were 47,430 units at $41.60 each. Sprint Shoes uses LIFO accounting.

The gross profit is 484,375.

What is was the value of ending inventory?