Sprint Shoes Inc. had a beginning inventory of 9,500 units on January 1, 20X1. The costs associated with the inventory were:


Material $15.00 per unit

Labor 8.00 per unit

Overhead 7.10 per unit


During 20X1, the firm produced 43,500 units with the following costs:


Material $16.50 per unit

Labor 8.80 per unit

Overhead 9.30 per unit


Sales for the year were 47,450 units at $42.60 each. Sprint Shoes uses LIFO accounting.


Required:

a. What was the gross profit?

b. What was the value of ending inventory?