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Dollar LIFO for Norman Television

Norman's Televisions produces television sets in 3 categories: portable, midsize , and flat-screen. On Jan 1, 2010, Norman adopted dollar value LIFO and decided to use a single inventory pool. Jan 1 inventory is:

Category Quantity cost per Unit Total Cost
Portable 6,000 100 600,000
Midsize 8,000 250 2,000,000
Flat screen 3000 400 1,200,000

The During 2010 the company had the following purchases and sales
Quant sold selling $
Portable 15,000 110 14,000 150
Midsize 20,000 300 24,000 405
Flat screen 10,000 500 6,000 600

Compute ending inventory, cost of goods sold and gross profit using single inventory, then using three inventory pools.. using dollar value LIFO.

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Using Single Inventory
January 1, 2010
Category Quantity Cost per unit Total cost
Portable 6,000 100 600,000
Midsize 8,000 250 2,000,000
Flat screen 3,000 400 1,200,000

During the year
Purchases Cost per unit Sales Selling price per unit
Portable 15,000 110 14,000 150
Midsize 20,000 300 24,000 405 30,000 5 4
Flat screen 10,000 500 6,000 600 10,000 4 4
25000 2.1 2
Ending inventory in ...

Solution Summary

The solution discusses the Dollar LIFO for Norman Television and computes ending inventory, CGS and gross profit.

$2.19