Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:
Jan. 20 Purchased
Apr. 21
Purchased
July 25
Purchased
Sept. 19
Purchased
490 units
110 units
250
units
90 units
G) (S) ) S
Required A Required B
64
8 =
$10
$12
$13
-
$3,920
1,100
3,000
1,170
During the year, The Shirt Shop sold 760 T-shirts for $18 each.
Required
a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the
assumptions: (1) FIFO, (2) LIFO, and (3) weighted average.
b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following
assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round intermediate calculations to 2 decimal places a
Transcribed Image Text:The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased 490 units 110 units 250 units 90 units G) (S) ) S Required A Required B 64 8 = $10 $12 $13 - $3,920 1,100 3,000 1,170 During the year, The Shirt Shop sold 760 T-shirts for $18 each. Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Answer is not complete. Complete this question by entering your answers in the tabs below. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round intermediate calculations to 2 decimal places a
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