Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1: Material $5 Labor 3 Overhead 2 $10 Beginning

Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1: Material $5 Labor 3 Overhead 2 $10 Beginning inventory at these costs on July 1 was 11,500 units. From July 1 to December 1, Convex produced 26,000 units. These units had a material cost of $7 per unit. The costs for labor and overhead were the same. Convex uses FIFO inventory accounting. a. Assuming that Convex sold 28,000 units during the last six months of the year at $14 each, what would gross profit be?

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Alycia Zemlak

Feb 20, 2025

Gross profit= $79,000Explanation:Giving the following information: July 1, 20X1: Material $5 Labor 3 Overhead 2 Total= $10 Beginning inventory at these costs on July 1 was 11,500 units. From July 1 to December 1, Convex produced 26,000 units. These units had a material cost of $7 per unit. First, we need to determine the cost of goods sold. Under the FIFO (first-in, first-out) method, the COGS is calculated using the cost of the first units produces.COGS= 11,500*10 + 16,500*12= $313,000Now, we can calculate the gross profit:Gross profit= sales - cogsGross profit= 28,000*14 - 313,000Gross profit= $79,000... Show More

Alycia Zemlak

Feb 20, 2025

explanation: kool beans... Show More

Alycia Zemlak

Feb 20, 2025

Answercertificate;... Show More

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Johathan Wehner

Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1: Material $5 Labor 3 Overhead 2 $10 Beginning

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