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What would gross profit be? What is the value of ending inventory? Convex Mechanical Supplies produces a product with the following cost as of July 1, 2004: Material

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What would gross profit be? What is the value of ending inventory?

Convex Mechanical Supplies produces a product with the following cost as of July 1, 2004:

Material................$6
Labor................... 4
Overhead............. 2
____
$12

Beginning inventory at these costs on July 1 was 5,000 units. From July 1 to December 1, Convex produced 15,000 units. These units had a material cost of $10 per unit. The cost for labor and overhead were the same. Convex uses FIFO inventory accounting.

Assuming Convex sold 17,000 units during the last six months of the year at $20 each.

3. What would gross profit be?
A. $60,000
B. $87,000
C. $67,000
D. $88,000

4. What is the value of ending inventory?
A. $48,000
B. $60,000
C. $50,000
D. $58,000