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: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased Exercise 5-5 (Algo) Part a Ending inventory 490 units @ $8= $3,920 130 units During the year, The Shirt Shop sold 780 T-shirts for $18 each. 240 units @ $ 11 = 80 units @$13 = FIFO 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. (Round Intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount.) 1,170 2,640 1,040 LIFO Weighted Average

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: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased Exercise 5-5 (Algo) Part a Ending inventory 490 units @ $8= $3,920 130 units During the year, The Shirt Shop sold 780 T-shirts for $18 each. 240 units @ $ 11 = 80 units @$13 = FIFO 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. (Round Intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount.) 1,170 2,640 1,040 LIFO Weighted Average

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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