Question
My question: Assume the company uses three inventory pools instead of one. Compute ending inventory, cost of goods sold, and gross profit. (Round price index
My question: 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.)
Williams Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, William 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 | 5,400 | $ 100 | $ 540,000 | |||
Midsize | 7,200 | 250 | 1,800,000 | |||
Flat-screen | 2,700 | 400 | 1,080,000 | |||
15,300 | $ 3,420,000 |
During 2020, the company had the following purchases and sales.
Category | Quantity Purchased | Cost per Unit | Quantity Sold | Selling Price per Unit | ||||
Portable | 13,500 | $ 110 | 12,600 | $ 150 | ||||
Midsize | 18,000 | 300 | 21,600 | 400 | ||||
Flat-screen | 9,000 | 500 | 5,400 | 600 | ||||
40,500 | 39,600 |
(b)
Incorrect answer icon
Your answer is incorrect.
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 | $ |
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