Question
Henrys Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2017, Henry adopted dollar-value LIFO and decided to use a
Henrys Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2017, Henry 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 $129 $ 812,700 Midsize 8,200 323 2,648,600 Flat-screen 2,800 516 1,444,800 17,300 $4,906,100 During 2017, the company had the following purchases and sales. Category Quantity Purchased Cost per Unit Quantity Sold Selling Price per Unit Portable 15,800 $142 13,900 $194 Midsize 19,200 387 22,900 522 Flat-screen 10,400 645 6,300 774 45,400 43,100 Calculate price index. Compute ending inventory, cost of goods sold, and gross profit. Assume the company uses three inventory pools instead of one. Compute ending inventory, cost of goods sold, and gross profit.
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