Required information Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1 [The following information applies to the questions displayed below.] The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: January 20 April 21 July 25 September 19 Purchased 330 units @ $5 = Purchased 90 units @ $6 = Purchased 210 units @ $8 = Purchased 80 units @ $10 = During the year, The Shirt Shop sold 530 T-shirts for $15 each. Exercise 5-5 (Algo) Part a Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. Note: Round intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount. Ending inventory FIFO $ LIFO 900 $ Weighted Average $1,650 540 1,680 800 1,184
Required information Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1 [The following information applies to the questions displayed below.] The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: January 20 April 21 July 25 September 19 Purchased 330 units @ $5 = Purchased 90 units @ $6 = Purchased 210 units @ $8 = Purchased 80 units @ $10 = During the year, The Shirt Shop sold 530 T-shirts for $15 each. Exercise 5-5 (Algo) Part a Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. Note: Round intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount. Ending inventory FIFO $ LIFO 900 $ Weighted Average $1,650 540 1,680 800 1,184
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
![Required information
Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1
[The following information applies to the questions displayed below.]
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:
January 20
April 21
July 25
September 19
Purchased 330 units @ $5 =
Purchased 90 units @ $6 =
Purchased 210 units @ $8 =
Purchased 80 units @ $10 =
During the year, The Shirt Shop sold 530 T-shirts for $15 each.
Exercise 5-5 (Algo) Part a
Required
a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow
assumptions: (1) FIFO, (2) LIFO, and (3) weighted average.
Note: Round intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount.
Ending inventory
FIFO
...
LIFO
$ 900 $
Weighted
Average
$1,650
540
1,680
800
1,184](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c90f5cc-8ea9-4bf1-b535-7c9325023ef2%2F035494a4-2f26-422a-b23f-09355f9d9f68%2F4btmv4j_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1
[The following information applies to the questions displayed below.]
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:
January 20
April 21
July 25
September 19
Purchased 330 units @ $5 =
Purchased 90 units @ $6 =
Purchased 210 units @ $8 =
Purchased 80 units @ $10 =
During the year, The Shirt Shop sold 530 T-shirts for $15 each.
Exercise 5-5 (Algo) Part a
Required
a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow
assumptions: (1) FIFO, (2) LIFO, and (3) weighted average.
Note: Round intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount.
Ending inventory
FIFO
...
LIFO
$ 900 $
Weighted
Average
$1,650
540
1,680
800
1,184
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