Problem 8-08

Anthonys Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, Anthony 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		15,600		$100		$ 1,560,000
Midsize		20,800		250		5,200,000
Flat-screen		7,800		400		3,120,000
		44,200				$9,880,000

During 2020, the company had the following purchases and sales.

Category		Quantity Purchased		Cost per Unit		Quantity Sold		Selling Price per Unit
Portable		39,000		$110		36,400		$150
Midsize		52,000		300		62,400		400
Flat-screen		26,000		500		15,600		600
		117,000				114,400

Calculate price index. (Round price index to 4 decimal places, e.g. 1.4562.)

Price index

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		$