The Shirt Shop had the following transactions for T-shirts for 2016, its first year of operations: Jan. 20 Purchased 400 units @ $8 = $3,200 Apr. 21 Purchased 200 units @ $10 = 2,000 July 25 Purchased 280 units @ $13 = Sept. 19 Purchased 90 units @ $20 = 3,640 1,800 During the year, The Shirt Shop sold 810 T-shirts for $20 each. b. Record the above transactions in general journal form and post to T-accounts using (1) FIFO, (2) LIFO, and (3) weighted average. Use a separate set of journal entries and T - accounts for each method. Assume all transactions are cash transactions Record the entry for purchase of inventory for cash on January 20. Record the entry for purchase of inventory for cash on April 21. Record the entry for purchase of inventory for cash on July 25. Record the entry for purchase of inventory for cash on September 19. Record sale of inventory for cash for FIFO Sales and Cost of goods sold Record entry for cost of goods sold for FIFO Sales and Cost of goods sold Record sale of inventory for cash for LIFO Sales and Cost of goods sold Record entry for cost of goods sold for LIFO Sales and Cost of goods sold Record sale of inventory for cash for Weighted average Sales and Cost of goods sold Record entry for cost of goods sold for Weighted average Sales and Cost of goods sold Then, fill out the FIFO, LIFO, and weighted average on the charts with the beginning balances and ending balances
The Shirt Shop had the following transactions for T-shirts for 2016, its first year of operations: Jan. 20 Purchased 400 units @ $8 = $3,200 Apr. 21 Purchased 200 units @ $10 = 2,000 July 25 Purchased 280 units @ $13 = Sept. 19 Purchased 90 units @ $20 = 3,640 1,800 During the year, The Shirt Shop sold 810 T-shirts for $20 each. b. Record the above transactions in general journal form and post to T-accounts using (1) FIFO, (2) LIFO, and (3) weighted average. Use a separate set of journal entries and T - accounts for each method. Assume all transactions are cash transactions Record the entry for purchase of inventory for cash on January 20. Record the entry for purchase of inventory for cash on April 21. Record the entry for purchase of inventory for cash on July 25. Record the entry for purchase of inventory for cash on September 19. Record sale of inventory for cash for FIFO Sales and Cost of goods sold Record entry for cost of goods sold for FIFO Sales and Cost of goods sold Record sale of inventory for cash for LIFO Sales and Cost of goods sold Record entry for cost of goods sold for LIFO Sales and Cost of goods sold Record sale of inventory for cash for Weighted average Sales and Cost of goods sold Record entry for cost of goods sold for Weighted average Sales and Cost of goods sold Then, fill out the FIFO, LIFO, and weighted average on the charts with the beginning balances and ending balances
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am. 156.
Transcribed Image Text:The Shirt Shop had the following transactions for T-shirts for 2016, its first year of operations:
Jan. 20 Purchased 400 units @ $8 = $3,200
Apr. 21 Purchased 200 units @ $10 = 2,000
July 25 Purchased 280 units @ $13 =
Sept. 19 Purchased 90 units @ $20 =
3,640
1,800
During the year, The Shirt Shop sold 810 T-shirts for $20 each.
b.
Record the above transactions in general journal form and post to T-accounts using (1) FIFO, (2) LIFO, and (3) weighted average. Use a separate set of journal entries and T - accounts for each method. Assume all transactions are cash transactions
Record the entry for purchase of inventory for cash on January 20.
Record the entry for purchase of inventory for cash on April 21.
Record the entry for purchase of inventory for cash on July 25.
Record the entry for purchase of inventory for cash on September 19.
Record sale of inventory for cash for FIFO Sales and Cost of goods sold
Record entry for cost of goods sold for FIFO Sales and Cost of goods sold
Record sale of inventory for cash for LIFO Sales and Cost of goods sold
Record entry for cost of goods sold for LIFO Sales and Cost of goods sold
Record sale of inventory for cash for Weighted average Sales and Cost of goods sold
Record entry for cost of goods sold for Weighted average Sales and Cost of goods sold
Then, fill out the FIFO, LIFO, and weighted average on the charts with the beginning balances and ending balances
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education