Question
Brians Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, Brian adopted dollar-value LIFO and decided to use a
Brians Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, Brian 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 | 15,000 | $100 | $ 1,500,000 | |||
Midsize | 20,000 | 250 | 5,000,000 | |||
Flat-screen | 7,500 | 400 | 3,000,000 | |||
42,500 | $9,500,000 |
During 2020, the company had the following purchases and sales.
Category | Quantity Purchased | Cost per Unit | Quantity Sold | Selling Price per Unit | ||||
Portable | 37,500 | $110 | 35,000 | $150 | ||||
Midsize | 50,000 | 300 | 60,000 | 400 | ||||
Flat-screen | 25,000 | 500 | 15,000 | 600 | ||||
112,500 | 110,000 |
Compute ending inventory, cost of goods sold, and gross profit. (Round answers to 0 decimal places, e.g. 6,548.) Assume the company uses three inventory pools instead of one. Compute ending inventory, cost of goods sold, and gross profit. (Round price index to 2 decimal places, e.g. 1.45 and final answers to 0 decimal places, e.g. 6,548.)
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