Question

Problem 8-8 Morgan's Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2017, Morgan adopted dollar-value LIFO and decided to une a single inventory pool. The company's January 1 inventory consists of: Category Quantity Cost per Unit Total Cost Portable Midsize Flat-screen 5,700 8,100 3.100 16,900 115 655,500 288 2,332,800 460 1,426,000 $4,414,300 During 2017, the company had the following purchases and sales Quantity Quantity Selling Price Category Purchased Cost per Unit Sold Portable Midsize per Unit 15,200 20,900 9,800 $127 13,500 345 24,600 75 5,700 3,800 $173 466 690 Flat-screen90 45,900

Answer 1

1. Ending Inventory=$ 5,922,100( Refer to table and note below)
2. Cost of Goods Sold=$ 13,479,000( Refer to table and note below)
3. Gross Profit=$ 4,253,100( Refer to table and note below)

Particulars	Portable	Midsize	Flat -screen
Opening stock	5700	8100	3100
Add: Purchases	15200	20900	9800
	20900	29000	12900
Less: Goods Sold	13500	24600	5700
Closing Stock	7400	4400	7200
Cost of closing stock	1700 units*$127 5700 units*$115	4400units*288	4100units*575 3100units*460
Cost of closing stock	$(215900+655500) =$ 8,71,400	$ 1,267,200	$(2357500+1426000) $ 3,783,500
Selling Price per unit	$ 173	$ 466	$ 690
Costof goods sold/unit	$ 127	$ 345	$ 575
Gross Profit per unit	$ 46	$ 121	$115
Total Cost of goods sold	$127*13500 =$ 1,714,500	$ 345*24600 =$ 8,487,000	$575*5700 =$3,277,500
Total Gross Profit	$46*13500 =$6,21,000	$121*24600 =$ 2,976,600	$115*5700 =$ 6,55,500

Note :

1. Ending Inventory=$(871400+1267200+3783500)=$ 5,922,100
2. Cost of Goods Sold=$(1714500+8487000+3277500)=$13,479,000
3. Gross Profit=$(621000+2976600+655500)=$4,253,100