TotalOldi
ve
toryQua
tityU
itsCostperu
itTotalTotalCostofGoodsSold
7501612000
30012360015600
bFIFOAccou
ti
g
Costofgoodssoldo
1050u
itsOldi
ve
toryQua
tityU
itsCostperu
itTotalNewi
ve
toryQua
tityU
itsCostperu
itTotalTotalCostofGoodsSold
825129900
22516360013500
S119
Copyright2005byTheMcGrawHillCompa
iesI
c
f410
Co
vexMecha
icalSuppliesproducesaproductwiththefollowi
gcostsasofJuly12004
Material6Labor4Overhead2
12
Begi
i
gi
ve
toryatthesecostso
July1was5000u
itsFromJuly1toDecember1Co
vexproduced15000u
itsTheseu
itshadamaterialcostof10peru
itThecostsforlabora
doverheadwerethesameCo
vexusesFIFOi
ve
toryaccou
ti
g
Assumi
gCo
vexsold17000u
itsduri
gthelastsixmo
thsoftheyearat20eachwhatwouldgrossprofitbeWhatisthevalueofe
di
gi
ve
tory
Solutio

Co
vexMecha
icalSupplies
Sales1700020CostofgoodssoldOldi
ve
toryQua
tityu
itsCostperu
itTotalNewi
ve
toryQua
tityu
itsCostperu
itTotalTotalcostofgoodssoldGrossprofit
500012
60000
1200016
192000
340000
25200088000
Copyright2005byTheMcGrawHillCompa
iesI
c
S120
f410Co
ti
ued
Valueofe
di
gi
ve
toryBegi
i
gi
ve
tory5000x12Totalproductio
15000x16Totali
ve
toryavailableforsaleCostofgoodsoldE
di
gi
ve
tory
or3000u
itsx1648000
60000
240000
30000025200048000
S121
Copyright2005byTheMcGrawHillCompa
iesI
c
f411
Assumei
problem10thatCo
vexusedLIFOi
ve
toryaccou
ti
gi
steadofFIFOwhatwouldgrossprofitbeWhatwouldbethevalueofe
di
gi
ve
tory
Solutio
Co
vexMecha
icalSuppliesCo
ti
ued
Sales1700020CostofgoodssoldNewi
ve
toryQua
tityu
itsCostperu
itTotalOldi
ve
r