Norman’s Televisions produces television sets in three categories: portable, mid
ID: 2416133 • Letter: N
Question
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
$6,048,000
During 2014, the company had the following purchases and sales.
Category
Quantity
Purchased
Cost per Unit
Quantity
Sold
Selling Price
per Unit
Portable
16,100
$154
14,600
$210
Midsize
21,900
420
26,000
567
Flat-screen
10,100
700
6,700
840
48,100
47,300
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
$
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
$6,048,000
During 2014, the company had the following purchases and sales.
Category
Quantity
Purchased
Cost per Unit
Quantity
Sold
Selling Price
per Unit
Portable
16,100
$154
14,600
$210
Midsize
21,900
420
26,000
567
Flat-screen
10,100
700
6,700
840
48,100
47,300
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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