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.
|
Category
|
Quantity
Purchased
|
Cost per Unit
|
Quantity
Sold
|
Selling Price
per Unit
|
|
Portable
|
15,300
|
$123
|
14,000
|
$168
|
|
Midsize
|
20,900
|
336
|
24,100
|
454
|
|
Flat-screen
|
9,800
|
560
|
5,900
|
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.