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Problem - John's 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 company's January 1 inventory consists of:
Category
Quantity
Cost per Unit
Total Cost
Portable
5,900
$112
$ 660,800
Midsize
8,200
280
2,296,000
Flat-screen
2,800
448
1,254,400
16,900
$4,211,200
During 2017, the company had the following purchases and sales.
Quantity Purchased
Quantity Sold
Selling Price per Unit
15,300
$123
14,000
$168
20,900
336
24,100
454
9,800
560
672
46,000
44,000
Calculate price index.
Compute ending inventory, cost of goods sold, and gross profit.
Assume the company uses three inventory pools instead of one. Compute ending inventory, cost of goods sold, and gross profit.
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