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Sprint Shoes, Inc. Inventory Control Exercise

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Sprint Shoes, Inc. had a beginning inventory of 9,000 units on January 1, 2007. The costs associated with the inventory were:

Materials: $13 per unit
Labor: $8 per unit
Overhead: $6.10 per unit

During 2007, the firm produced 42,500 units with the following costs:
Material: $15.50
Labor: $7.80 per unit
Overhead: $8.30 per unit

Sales for the year were 47,250 units at $39.60 each. Sprint Shoes uses LIFO accounting. What was the gross profit? What was the value of ending inventory?

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