Problem 8-08 (Part Level Submission) John’s Televisions produces television sets in three categories: portable, midsize, and...

Problem 8-08 (Part Level Submission)

John’s Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, 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	3,600	$100	$ 360,000
Midsize	4,800	250	1,200,000
Flat-screen	1,800	400	720,000
	10,200		$2,280,000

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

Category	Quantity Purchased	Cost per Unit	Quantity Sold	Selling Price per Unit
Portable	9,000	$110	8,400	$150
Midsize	12,000	300	14,400	400
Flat-screen	6,000	500	3,600	600
	27,000		26,400

(a1)


	Your answer is correct.

Calculate price index. (Round price index to 4 decimal places, e.g. 1.4562.)

Price index

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(a2)

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		$

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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