Answer:
$11,250
Explanation:
Given:
Cost of inventory acquired = $100,000
Total number of product LF = 3,000
units of product 1B = 7,000
Selling price of LF = $30 per unit
Selling price of 1B = $10 per unit
Number of units of LF sold = 1000
Now,
Total Selling price = 3000 × $30 + 7,000 × $10
= $9,000 + $7,000
= $160,000
Overall Gross profit = Total Selling price - Cost of inventory acquired
= $160,000 - $100,000
= $60,000
The proportion of cost for LF = [tex]\frac{\textup{Cost of inventory acquired}}{\textup{Total Selling price}}\times\textup{Total selling price of LF}[/tex]
= [tex]\frac{100,000}{160,000}\times30[/tex]
= $18.75
Cost of 1000 units of LF = 1000 × $18.75 = $18,750
Sale price of 1000 units of LF = 1000 × $30 = $30,000
Therefore,
Gross profit to be recognized for 1000 units of LF = $30,000 - $18,750
= $11,250
