At the end of January, Mineral Labs had an inventory of 965 units, which cost 13
ID: 2626039 • Letter: A
Question
At the end of January, Mineral Labs had an inventory of 965 units, which cost 13 perunit to produce. During february, the company produced 1850 unit at a cost of 17 per unit.
If the firm sold 2750 units in february what was the cost of goods sold?
if the firm sold 2750 units in February what was the cst of goods sold?
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MATERIAL-5 perunit
LABOR 3 per unnit
OVERHEAD 1 per unit
begininning inventory at these costs on july 1 was 3450 units. from july 1 to december 1 2014 Beil produced 12900 units. these units had a material cost of 4 labor of 6 and overhead of 3 per unit. Beil uses LIFO.
Assuming that Beil sold 14,800 units during the last 6 months of the year at 18 each what is its gross profit
what is the value of ending inventory
Explanation / Answer
At the end of January, Mineral Labs had an inventory of 965 units, which cost 13 perunit to produce. During february, the company produced 1850 unit at a cost of 17 per unit.
FIFO Method
if the firm sold 2750 units in February what was the cst of goods sold?
The cost of goods sold = 965*13 + (2750-965)*17
The cost of goods sold = $ 42,890
LIFO Method
if the firm sold 2750 units in February what was the cst of goods sold?
The cost of goods sold = 1850*17 + (2750-1850)*13
The cost of goods sold = $ 43,150
Weighted Average Method
If the firm sold 2750 units in february what was the cost of goods sold?
The cost of goods sold = (965*13 + 1850*17)/(965+1850) * 2750 = $ 42979.13
-----------
MATERIAL-5 perunit
LABOR 3 per unnit
OVERHEAD 1 per unit
begininning inventory at these costs on july 1 was 3450 units. from july 1 to december 1 2014 Beil produced 12900 units. these units had a material cost of 4 labor of 6 and overhead of 3 per unit. Beil uses LIFO.
Assuming that Beil sold 14,800 units during the last 6 months of the year at 18 each
what is its gross profit
Sale = 14800*18 = $ 266400
Cost of Good sold = 12900*(4+6+3) + (14800-12900)*(5+3+1) = $ 184800
Gross Profit = Sale-Cost of Good sold
Gross Profit = 266400-184800
Gross Profit = $ 81600
what is the value of ending inventory
value of ending inventory = (3450 -( 14800-12900)) * (5 +3+1)
value of ending inventory = $ 13950
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