Category Quantity Cost per Unit Total Cost Category Quantity Purchased Cost per
ID: 2415887 • Letter: C
Question
Category
Quantity
Cost per Unit
Total Cost
Category
Quantity
Purchased
Cost per Unit
Quantity
Sold
Selling Price
per Unit
Compute ending inventory, cost of goods sold, and gross profit. (Round answers to 0 decimal places, e.g. 6,548.)
Norman’s Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2014, Norman 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 6,700 $140 $ 938,000 Midsize 9,000 350 3,150,000 Flat-screen 3,500 560 1,960,000 19,200 $6,048,000During 2014, the company had the following purchases and sales.
Category
Quantity
Purchased
Cost per Unit
Quantity
Sold
Selling Price
per Unit
Compute ending inventory, cost of goods sold, and gross profit. (Round answers to 0 decimal places, e.g. 6,548.)
Ending inventory$
Cost of goods sold$
Gross profit$
Explanation / Answer
Purchases
COGS
Ending Inventory
Date
Units
Cost
Total
Units
Cost
Total
Units
Cost
Total
Portable
6700
$ 140
$ 938,000
Midsize
9,000
$ 350
$ 3,150,000
Flat-screen
3,500
$ 560
$ 1,960,000
Portable
16100
$ 154
$ 2,479,400
14600
$ 154
$ 2,248,400
1,500
$ 154
$ 231,000
6,700
$ 140
$ 938,000
Midsize
21900
$ 420
$ 9,198,000
21900
$ 420
$ 9,198,000
4100
$ 350
$ 1,435,000
4,900
$ 350
$ 1,715,000
Flat-screen
10100
$ 700
$ 7,070,000
6700
$ 700
$ 4,690,000
3,400
$ 700
$ 2,380,000
3,500
$ 560
$ 1,960,000
$67,300
$24,795,400
$47,300
$17,571,400
$ 7,224,000
Ending inventory=$$7,224,000
Cost of goods sold=$17,571,400
Gross Profit
=Sales – Cost of goods sold
Portable---------------------- 14,600 x 210= $ 3,066,000
Midsize---------------------- 26,000 x 567= $14,742,000
Flat-screen ----------6,700 X 840= $5,628,000
-----------------
Sales $23,436,000
$23,436,000-$17,571,400=$5,864,600
Purchases
COGS
Ending Inventory
Date
Units
Cost
Total
Units
Cost
Total
Units
Cost
Total
Portable
6700
$ 140
$ 938,000
Midsize
9,000
$ 350
$ 3,150,000
Flat-screen
3,500
$ 560
$ 1,960,000
Portable
16100
$ 154
$ 2,479,400
14600
$ 154
$ 2,248,400
1,500
$ 154
$ 231,000
6,700
$ 140
$ 938,000
Midsize
21900
$ 420
$ 9,198,000
21900
$ 420
$ 9,198,000
4100
$ 350
$ 1,435,000
4,900
$ 350
$ 1,715,000
Flat-screen
10100
$ 700
$ 7,070,000
6700
$ 700
$ 4,690,000
3,400
$ 700
$ 2,380,000
3,500
$ 560
$ 1,960,000
$67,300
$24,795,400
$47,300
$17,571,400
$ 7,224,000
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