Problem 8-08

Thomass Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, Thomas 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		9,000		$100		$ 900,000
Midsize		12,000		250		3,000,000
Flat-screen		4,500		400		1,800,000
		25,500				$5,700,000

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

Category		Quantity Purchased		Cost per Unit		Quantity Sold		Selling Price per Unit
Portable		22,500		$110		21,000		$150
Midsize		30,000		300		36,000		400
Flat-screen		15,000		500		9,000		600
		67,500				66,000

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		$