Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / Sprint Shoes Inc
Sprint Shoes Inc. had a beginning inventory of 9,150 units on January 1, 20X1. The costs associated with the inventory were:
Material Labor Overhead
$ 13.00 per unit 8.00 per unit 6.10 per unit
During 20X1, the firm produced 42,800 units with the following costs:
Material Labor Overhead
$ 15.50 per unit 7.80 per unit 8.30 per unit
Sales for the year were 47,310 units at $42.60 each. Sprint Shoes uses LIFO accounting.
a. What was the gross profit? (Do not round intermediate calculations.)
Gross profit
r
$ 540,7051
Material $ 15.50 per unit Labor 7.80 per unit Overhead 8.30 per unit
Sales for the year were 47,310 units at $42.60 each. Sprint Shoes uses LIFO accounting. a. What was the gross profit? (Do not round intermediate calculations.)
Gross profit
540,7051
b. What was the value of ending inventory? (Do not round intermediate calculations.)
Ending inventory
| Part - (a) | Computation of Gross Profit: | |||
| Sprint Shoes, Inc. | ||||
| Particulars | Amount ($) | |||
| Sales (47,310*42.6) | 2015406 | |||
| Cost of goods sold: | ||||
| New inventory | ||||
| Units Produced | 42,800 | |||
| Cost per unit (15.5+7.8+8.3) | 31.6 | |||
| Total | 1352480 | |||
| Old inventory | ||||
| Units (47,310-42,800) | 4510 | |||
| Cost per unit (13+8+6.1) | 27.1 | |||
| Total | 122221 | |||
| Total cost of goods sold | 1474701 | |||
| Gross profit | 540705 | |||
| Part - (b) | Computation of Value of Ending Inventory: | |||
| Beginning inventory (9,150*27.1) | 247965 | |||
| Add : Total Production | 1,352,480 | |||
| (42,800*31.6) | ||||
| Total inventory available for sale | 1,600,445 | |||
| Less : Cost of goods sold | 1474701 | |||
| Ending inventory | 125,744 |
