Robertson Corporation acquired two inventory items at a lump-sum cost of $90,000. The acquisition included 3,000 units of product CF, and 7,000 units of product 3B. CF normally sells for $27 per unit, and 3B for $9 per unit. If Robertson sells 1,000 units of CF, what amount of gross profit should it recognize?
A) $3,375.
B) $10,125.
C) $18,000.
D) $21,375.

Question

Quizplus · Accepted Answer

First, we need to allocate the cost of the inventory items to each product:
- CF: (3,000/10,000) x $90,000 = $27,000
- 3B: (7,000/10,000) x $90,000 = $63,000

Next, we need to determine the cost of goods sold (COGS) for the 1,000 units of CF that were sold:
- COGS = (1,000/3,000) x $27,000 = $9,000

Finally, we can calculate the gross profit:
- Revenue from selling 1,000 units of CF = 1,000 x $27 = $27,000
- Gross profit = $27,000 - $9,000 = $18,000

Therefore, the correct answer is B.

Robertson Corporation Acquired Two Inventory Items at a Lump-Sum Cost