Chapter 4, Problem 15P

The Bradley Corporation produces a product with the following costs as of July 1, 20X1:

Beginning inventory at these costs on July 1 was 3,250 units. From July 1 to December 1, 20X1, Bradley produced 12,500 units. These units had a material cost of $\text{\$5}$ , labor of $\text{\$4}$ , and overhead of $\text{\$5}$ per unit. Bradley uses LIFO inventory accounting.

Assuming that Bradley sold 14,000 units during the last six months of the year at $\text{\$19}$ each, what is its gross profit? What is the value of ending inventory?