James's Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2025, Jamesadopted dollar-value LIFO and decided to use a single inventory pool. The company's January 1 inventory consists of:CategoryPortableMidsizeFlat-screenCategoryPortableMidsizeFlat-screen(a1)Quantity3,000Price index4,0001,5008,500QuantityPurchasedDuring 2025, the company had the following purchases and sales.7,50010,0005,000Cost per Unit$10022,500250400Cost per Unit$110300Total Cost500$300,0001,000,000600,000$1,900,000QuantitySold7,00012,0003,00022,000Selling Priceper Unit$150400600Calculate the price index for 2025. (Round price index to 4 decimal places, e.g. 1.4562.)

Solution: Inorder to calculate the Price Index first of all we need to find the ending…

James's Televisions produces television sets in three categories: portable, midsize, and flat-screen. On Ja adopted dollar-value LIFO and decided to use a single inventory pool. The company's January 1 inventor Category Quantity Cost per Unit 3,000 $100 Portable Midsize Flat-screen 4,000 1,500 8,500 250 400 Total Cost $300,000 1,000,000 600,000 $1,900,000

James's Televisions produces television sets in three categories: portable, midsize, and flat-screen. On Ja adopted dollar-value LIFO and decided to use a single inventory pool. The company's January 1 inventor Category Quantity Cost per Unit 3,000 $100 Portable Midsize Flat-screen 4,000 1,500 8,500 250 400 Total Cost $300,000 1,000,000 600,000 $1,900,000

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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James's Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2025, James adopted dollar-value LIFO and decided to use a single inventory pool. The company's January 1 inventory consists of: Category Portable 3,000 3 Midsize 4,000 Flat-screen 1,500 8,500 Category Portable Midsize Flat-screen (a1) Quantity Cost per Unit $100 Price index During 2025, the company had the following purchases and sales. (a2) Quantity Purchased 7,500 10,000 5,000 Your answer is correct. 22,500 eTextbook and Media Ending inventory Gross profit X Your answer is incorrect. 250 $ Cost of goods sold $ 400 Cost per Unit $110 LA 300 500 Total Cost $300,000 1.2156 1,000,000 $1,900,000 Calculate the price index for 2025. (Round price index to 4 decimal places, e.g. 1.4562.) 600,000 Quantity Sold 2455000 5770000 7,000 1880000 12,000 3,000 Compute ending inventory, cost of goods sold, and gross profit. (Round answers to O decimal places, e.g. 6,548.) 22,000 Selling…
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