Question
Adamss Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2017, Adams adopted dollar-value LIFO and decided to use a
Adamss Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2017, Adams adopted dollar-value LIFO and decided to use a single inventory pool. The companys January 1 inventory consists of: Category Quantity Cost per Unit Total Cost Portable 6,300 $125 $ 787,500 Midsize 7,700 313 2,410,100 Flat-screen 2,900 500 1,450,000 16,900 $4,647,600 During 2017, the company had the following purchases and sales. Category Quantity Purchased Cost per Unit Quantity Sold Selling Price per Unit Portable 14,400 $138 13,800 $188 Midsize 20,100 375 23,300 506 Flat-screen 10,100 625 6,300 750 44,600 43,400
Assume the company uses three inventory pools instead of one. Compute ending inventory, cost of goods sold, and gross profit.
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