1. In 2016, the Whaddock Company purchased 20,830,000 units from its supplier at a cost of $18.00 per unit. Whaddock sold 21,900,000 units of its product in 2016 at a price of $28.00 per unit. Whaddock began 2016 with 1,250,000 units in inventory (inventory is carried at a cost of $18.00 per unit). Using this information, compute Whaddock’s gross profit for 2016.
2. Referring back to the previous question, compute Whaddock’s 2016 ending inventory balance in dollars (valued at cost per unit of $18.00).