Example 5: 11/2/2020 home
Example 5: 11/2/2020 home
Completion requirements
Opened: Tuesday, 11 February 2020, 12:00 AM
Due: Tuesday, 18 February 2020, 12:00 AM
CMS produces
a product with the following costs as of
June 1, 200X:
•Material $ 6
•Labor
4
•Overhead 2
$12
•Beginning
inventory at these costs on June 1 was 6,000 units. From June 1 to July 1, CMS produced
16,000
units.
These units had a material cost of $12 per unit. The costs for labor
= 6 and
overhead were the same. CMS
uses
FIFO inventory accounting.
Assuming that CMS sold 16,000
units
during the last six
months
of the year at $25
each,
What would gross profit be?