Question
Davids Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, David adopted dollar-value LIFO and decided to use a
Davids Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, David 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 | 6,600 | $100 | $ 660,000 | |||
Midsize | 8,800 | 250 | 2,200,000 | |||
Flat-screen | 3,300 | 400 | 1,320,000 | |||
18,700 | $4,180,000 |
During 2020, the company had the following purchases and sales.
Category | Quantity Purchased | Cost per Unit | Quantity Sold | Selling Price per Unit | ||||
Portable | 16,500 | $110 | 15,400 | $150 | ||||
Midsize | 22,000 | 300 | 26,400 | 400 | ||||
Flat-screen | 11,000 | 500 | 6,600 | 600 | ||||
49,500 | 48,400 |
|
Compute ending inventory, cost of goods sold, and gross profit. (Round answers to 0 decimal places, e.g. 6,548.)
Ending inventory | $ | |
Cost of goods sold | $ | |
Gross profit | $ |
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.)
Ending inventory | $ | |
Cost of goods sold | $ | |
Gross profit | $vvv |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started