Falcon€™s Televisions produces television sets in three categories: portable, midsize, and flatscreen. On January 1, 2007, Falcon adopted dollar-value LIFO and decided to use a single inventory pool. The company€™s January 1 inventory consists of:

During 2007, the company had the following purchases and sales.

Instructions
(a) Compute ending inventory, cost of goods sold, and gross profit.
(b) Assume the company uses three inventory pools instead of one. Repeat instruction(a).

Transcribed Image Text:

Category Portableuantity 6,000 8,000 Cost per Unit Total Cost Flatscreen8$100 400 600,000 2,000,000 1,200,000 $3,800,000 Midsize 250 3,000 17,000 Quantity Purchased Quantity Sold Category Portable Midsize 15,000 20,000 10,000 45,000 Cost per Unit $120 300 460 14,000 24,000 6,000 44,000 Selling Price per Unit $150 405 600