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Problem 8-8 (Part Level Submission) Category Quantity Cost per Unit Total Cost C

ID: 2568838 • Letter: P

Question

Problem 8-8 (Part Level Submission)

Category

Quantity

Cost per Unit

Total Cost

Category

Quantity
Purchased

Cost per Unit

Quantity
Sold

Selling Price
per Unit

(a2)

Compute ending inventory, cost of goods sold, and gross profit. (Round answers to 0 decimal places, e.g. 6,548.)

Problem 8-8 (Part Level Submission)

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 use a single inventory pool. The company’s January 1 inventory consists of:

Category

Quantity

Cost per Unit

Total Cost

Portable 6,200 $124 $ 768,800 Midsize 7,900 310 2,449,000 Flat-screen 3,100 496 1,537,600 17,200 $4,755,400
During 2017, the company had the following purchases and sales.

Category

Quantity
Purchased

Cost per Unit

Quantity
Sold

Selling Price
per Unit

Portable 15,200 $136 14,400 $186 Midsize 19,900 372 23,200 502 Flat-screen 9,700 620 6,200 744 44,800 43,800

Explanation / Answer

Ending Inventory

Portable

Mid size

Flat Screen

Total

Qty

Cost/Unit

Total

Qty

Cost/Unit

Total

Qty

Cost/Unit

Total

800

136

108800

4600

310

1426000

3500

620

2170000

6200

124

768800

3100

496

1537600

877600

1426000

3707600

6011200

Particulars

Portable

Mid size

Flat Screen

Qty

Cost/Unit

Total

Qty

Cost/Unit

Total

Qty

Cost/Unit

Total

Beginning Inventory

6200

124

768800

7900

310

2449000

3100

496

1537600

Purchases

15200

136

2067200

19900

372

7402800

9700

620

6014000

Cost of Goods sold under LIFO

14400

136

1958400

19900

372

7402800

6200

620

3844000

3300

310

1023000

Total Cost of Goods Sold

Particulars

Qty

Cost/Unit

Total

Portable

14400

136

1958400

Mid Size

19900

372

7402800

3300

310

1023000

Flat Screen

6200

620

3844000

Total Cost of Goods Sold

14228200

Gross Profit

Particulars

Qty

Cost/Unit

Total

Portable

14400

186

2678400

Mid Size

23200

502

11646400

Flat Screen

6200

744

4612800

Total Sales

18937600

Less: Total Cost of Goods Sold

14228200

Gross Profit

4709400

Ending Inventory

Portable

Mid size

Flat Screen

Total

Qty

Cost/Unit

Total

Qty

Cost/Unit

Total

Qty

Cost/Unit

Total

800

136

108800

4600

310

1426000

3500

620

2170000

6200

124

768800

3100

496

1537600

877600

1426000

3707600

6011200