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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff4cf8db3-c4c5-4f31-8215-092f4340668c%2Fd1753dc4-99f7-45ae-ad60-0096f405c6d2%2F9m48teb_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:
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
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Step 1: Introduce to FIFO, LIFO and Weighted Average Method
VIEWStep 2: Working for ending inventory units
VIEWStep 3: Working for cost of goods sold and ending inventory using FIFO
VIEWStep 4: Working for cost of goods sold and ending inventory using LIFO
VIEWStep 5: Working for ending inventory using Weighted Average Method
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