Question

In: Accounting

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

SHOW SOLUTION
LINK TO TEXT

Attempts: 1 of 5 used

(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		$

Expert Solution

ekkarill92 answered 2 years ago

Problem 8-08 Anthony’s Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January...

Problem 8-08 Anthony’s Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, Anthony 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 15,600 $100 $ 1,560,000 Midsize 20,800 250 5,200,000 Flat-screen 7,800 400 3,120,000 44,200 $9,880,000 During 2020, the company had the following purchases and sales. Category Quantity Purchased Cost per Unit Quantity Sold Selling Price per...

Steven’s Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020,...

Steven’s Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, Steven 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 13,800 $100 $ 1,380,000 Midsize 18,400 250 4,600,000 Flat-screen 6,900 400 2,760,000 39,100 $8,740,000 During 2020, the company had the following purchases and sales. Category Quantity Purchased Cost per Unit Quantity Sold Selling Price per Unit Portable...

Adams’s Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2017,...

Adams’s Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2017, Adams 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 6,300 $125 $ 787,500 Midsize 7,700 313 2,410,100 Flat-screen 2,900 500 1,450,000 16,900 $4,647,600 During 2017, the company had the following purchases and sales. Category Quantity Purchased Cost per Unit Quantity Sold Selling Price per Unit Portable...

Problem 9-8 (Part Level Submission) The records for the Clothing Department of Headland’s Discount Store are...

Problem 9-8 (Part Level Submission) The records for the Clothing Department of Headland’s Discount Store are summarized below for the month of January. Inventory, January 1: at retail $24,800; at cost $17,100 Purchases in January: at retail $135,400; at cost $86,710 Freight-in: $9,200 Purchase returns: at retail $3,000; at cost $2,200 Transfers in from suburban branch: at retail $13,200; at cost $7,000 Net markups: $8,100 Net markdowns: $4,100 Inventory losses due to normal breakage, etc.: at retail $300 Sales revenue...

Problem 3-38 (Part Level Submission) Ivanhoe Company produces a molded briefcase that is distributed to luggage...

Problem 3-38 (Part Level Submission) Ivanhoe Company produces a molded briefcase that is distributed to luggage stores. The following operating data for the current year has been accumulated for planning purposes. Sales price $42.00 Variable cost of goods sold 14.00 Variable selling expenses 12.60 Variable administrative expenses 5.00 Annual fixed expenses Overhead $28,844,400 Selling expenses 5,731,900 Administrative expenses 12,018,500 Ivanhoe can produce 5,547,000 cases a year. The projected net income for the coming year is expected to be $6,656,400. Ivanhoe...

Problem 8-05A a-b (Part Level Submission) (Video) The bank portion of the bank reconciliation for Vaughn...

Problem 8-05A a-b (Part Level Submission) (Video) The bank portion of the bank reconciliation for Vaughn Company at November 30, 2020, was as follows. Vaughn COMPANY Bank Reconciliation November 30, 2020 Cash balance per bank $14,767.90 Add: Deposits in transit 2,530.20 17,298.10 Less: Outstanding checks Check Number Check Amount 3451 $ 2,260.40 3470 720.10 3471 844.50 3472 1,426.80 3474 1,054.50 6,306.30 Adjusted cash balance per bank $10,991.80 The adjusted cash balance per bank agreed with the cash balance per books...

Problem 19-8 (Part Level Submission) The following information was disclosed during the audit of Elbert Inc....

Problem 19-8 (Part Level Submission) The following information was disclosed during the audit of Elbert Inc. 1. Year Amount Due per Tax Return 2017 $130,000 2018 104,000 2. On January 1, 2017, equipment costing $600,000 is purchased. For financial reporting purposes, the company uses straight-line depreciation over a 5-year life. For tax purposes, the company uses the elective straight-line method over a 5-year life. (Hint: For tax purposes, the half-year convention as discussed in Appendix 11A must be used.) 3....

Problem 8-35A (Part Level Submission) The Daniels Tool & Die Corporation has been in existence for...

Problem 8-35A (Part Level Submission) The Daniels Tool & Die Corporation has been in existence for a little over three years. The company’s sales have been increasing each year as it builds a reputation. The company manufactures dies to its customers’ specifications and therefore uses a job-order cost system. Factory overhead is applied to the jobs based on direct labour hours—the absorption-costing (full) method. Overapplied or underapplied overhead is treated as an adjustment to Cost of Goods Sold. The company’s...

Exercise 5-08 a-b (Part Level Submission) Financial information for two companies are presented below. (a) Fill...

Exercise 5-08 a-b (Part Level Submission) Financial information for two companies are presented below. (a) Fill in the missing amounts. Yoste Company Noone Company Sales revenue $90,000 $enter a dollar amount Sales returns and allowances enter a dollar amount 5,000 Net sales 84,000 100,000 Cost of goods sold 58,000 enter a dollar amount Gross profit enter a subtotal of the two previous amounts 40,000 Operating expenses 14,380 enter a dollar amount Net income enter a total net income 17,000

Problem 8-24 (Part Level Submission) Wright Water Co. is a leading producer of greenhouse irrigation systems....

Problem 8-24 (Part Level Submission) Wright Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an annual production of 50,000 timers, the company has calculated the following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation. Direct materials $13 Direct labor 5 Variable manufacturing overhead 4 Direct fixed manufacturing overhead 7 (40% salaries, 60% depreciation) Allocated fixed manufacturing overhead 8...