Problem: Falcon's Televisions produces television sets in three categories: portable, midsize, and flatscreen.
On 1/1/07 The company's January 1 inventory consists of:
January 1 Inventory
| Category |
Quantity |
Cost per Unit |
Total Cost |
| Portable |
6,000 |
100 |
600,000 |
| Midsize |
8,000 |
250 |
2,000,000 |
| Flatscreen |
3,000 |
400 |
1,200,000 |
|
17,000 |
|
3,800,000 |
During 2007, the company had the following purchases and sales.
Purchases and Sales
| Category |
Quantity Purchased |
Cost per Unit |
Quantity Sold |
Selling Price per Unit |
| Portable |
15,000 |
120 |
14,000 |
150 |
| Midsize |
20,000 |
300 |
24,000 |
405 |
| Flatscreen |
10,000 |
460 |
6,000 |
600 |
|
45,000 |
|
44,000 |
|
(a) Compute ending inventory, cost of goods sold, and gross profit. Using FIFO and weighed average