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    Dollar LIFO for Norman Television

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    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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    Solution Preview

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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

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