Problem 8-8

Johns Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2017, John 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		6,000		$111		$ 666,000
Midsize		7,800		278		2,168,400
Flat-screen		2,900		444		1,287,600
		16,700				$4,122,000

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

Category		Quantity Purchased		Cost per Unit		Quantity Sold		Selling Price per Unit
Portable		14,800		$122		13,400		$167
Midsize		20,400		333		24,500		450
Flat-screen		9,600		555		6,000		666
		44,800				43,900

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 6 decimal places, e.g. 1.456287 and final answers to 0 decimal places, e.g. 6,548.)

Ending inventory		$
Cost of goods sold		$
Gross profit		$