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Question 2: Marco Sun Fun manufactures three categories of bicycles: Mountain, Road, and Hybrid On January 1, 2018, Marco adopted dollar-value LIFO and decided to
Question 2: Marco Sun Fun manufactures three categories of bicycles: Mountain, Road, and Hybrid On January 1, 2018, Marco adopted dollar-value LIFO and decided to use a single inventory pool. The company's January 1 inventory consists of: Category Mountain Road Hybrid Quantity 3,000 2,000 5,000 10,000 Cost per Unit $450 800 250 Total Cost $1,350,000 1,600,000 1,250,000 $4,200,000 During 2018, the company had the following purchases and sales Quantity Cost per antity Selling Price Category Purchased 10,000 9,000 13,000 32,000 Sold 11,000 8,000 12,000 31,000 Unit Mountain Road Hybrid $495 820 300 per Unit 650 1,200 500 Required: Compute ending inventory, cost of goods sold, and gross profit. (Hint: to obtain the balance of ending inventory at current period cost, you need to find the number of units of each category in ending inventory and then use the most recent cost per unit)
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