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Homework answers / question archive / Turner Corp acquired two inventory items at lump-sum cost of 100,000

Turner Corp acquired two inventory items at lump-sum cost of 100,000

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Turner Corp acquired two inventory items at lump-sum cost of 100,000. The acquisition included 3,000 units of product LF, and 7,000 units of product 1B. LF normally sells for $30 per unit, an 1B for $10 per unit. If Turner sells 1,000 units of LF, what amount of gross profit should it recognize?

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Total Cost 100,000
Ratio of Product LF 3/10
Cost of LF 30,000
Units 3,000
Unit Cost of LF 10
Units Sold 1,000
Total Cost of Units Sold 10,000

 

 

Units 1,000
Selling Price 30
Sales 30,000
Cost of Goods Sold 10,000
Gross Profit 20,000

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