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 CostPortable 13,800 $100 $ 1,380,000Midsize 18,400 250 4,600,000Flat-screen 6,900 400 2,760,000 39,100 $8,740,000During 2020, the company had the following purchases and sales.Category QuantityPurchased Cost per Unit QuantitySold Selling Priceper UnitPortable 34,500 $110 32,200 $150Midsize 46,000 300 55,200 400Flat-screen 23,000 500 13,800 600 103,500 101,200 Assume the company uses three inventory pools instead of one. Compute ending inventory, cost of goods sold, and gross profit. (Round price index to 2 decimal places, e.g. 1.45 and final answers to 0 decimal places, e.g. 6,548.)Ending inventory $ Cost of goods sold $ Gross profit $

LIFO is a one type of store ledger account to record the inventory. Under this system the material…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	34,500	$110	32,200	$150
Midsize	46,000	300	55,200	400
Flat-screen	23,000	500	13,800	600
	103,500		101,200

Assume the company uses three inventory pools instead of one. Compute ending inventory, cost of goods sold, and gross profit. (Round price index to 2 decimal places, e.g. 1.45 and final answers to 0 decimal places, e.g. 6,548.)

Ending inventory		$
Cost of goods sold		$
Gross profit		$

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