Explore BrainMass

Explore BrainMass

    Calculating ending inventory and gross profit in LIFO

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Jerrico Wallboard Co. had a beginning inventory of 7,000 units on January 1, 2004.

    The costs associated with the inventory were:

    Material $9.00 unit
    Labor 5.00 unit
    Overhead 4.10 unit

    During 2004, Jerrico produced 28,500 units with the following costs:

    Material $11.50 unit
    Labor 4.80 unit
    Overhead 6.20 unit

    Sales for the year were 31,500 units at $29.60 each. Jerrico uses LIFO
    accounting. What was the gross profit? What was the value of ending inventory?

    © BrainMass Inc. brainmass.com June 3, 2020, 6:54 pm ad1c9bdddf


    Solution Summary

    The solution explains calculation of ending inventory and gross profit in LIFO inventory system