Problem:
Sprint Shoes, Inc. had a beginning inventory of 9,000 units on January 1, 2007. The costs associated with the inventory were:
Material $ 13.00 per unit
Labor 8.00 per unit
Overhead 6.10 per unit
During 2007, the firm produced 42,500 units with the following costs:
Material $ 15.50 per unit
Labor 7.00 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?