Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Morgans Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2017, Morgan adopted dollar-value LIFO and decided to use a

Morgans Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2017, Morgan 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 5,700 $126 $ 718,200
Midsize 7,800 315 2,457,000
Flat-screen 3,000 504 1,512,000
16,500 $4,687,200

During 2017, the company had the following purchases and sales.

Category

Quantity Purchased

Cost per Unit

Quantity Sold

Selling Price per Unit

Portable 14,600 $139 13,700 $189
Midsize 20,700 378 23,800 510
Flat-screen 9,700 630 5,700 756
45,000 43,200

1. Compute ending inventory, cost of goods sold, and gross profit. (Round answers to 0 decimal places, e.g. 6,548.)

Ending inventory $

image text in transcribed

Cost of goods sold $

image text in transcribed

Gross profit $

image text in transcribed

2. Calculate weighted-average cost

Please show all work.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Political Standards

Authors: Karthik Ramanna

1st Edition

022652809X, 9780226528090

More Books

Students also viewed these Accounting questions