Required information [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 430 units @ $ 7 = $3,010 230 units @ $ 9 = 310 units @ $12 = 120 units @ $14 = 2,070 3,720 1,680 During the year, The Shirt Shop sold 900 T-shirts for $23 each. quired Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the foll umptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round cost per unit to 2 decimal places and final ans
Required information [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 430 units @ $ 7 = $3,010 230 units @ $ 9 = 310 units @ $12 = 120 units @ $14 = 2,070 3,720 1,680 During the year, The Shirt Shop sold 900 T-shirts for $23 each. quired Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the foll umptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round cost per unit to 2 decimal places and final ans
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Answer full question.
Transcribed Image Text:### Inventory Management and Cost Flow Assumptions
**Scenario Description:**
During the year, The Shirt Shop sold 900 T-shirts for $23 each.
**Required Task:**
a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions:
1. FIFO (First-In, First-Out)
2. LIFO (Last-In, First-Out)
3. Weighted Average
**Instructions:**
- Round the cost per unit to 2 decimal places.
- Round the final answers to the nearest whole dollar amount.
**Table for Calculation:**
| | Ending Inventory |
|------------------|-------------------|
| **FIFO:** | |
| **LIFO:** | |
| **Weighted Average:** | |
This exercise will help you understand the implications of different inventory costing methods on financial statements.
![### Required Information
**[The following information applies to the questions displayed below.]**
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:
| Date | Transaction | Units Purchased | Cost per Unit ($) | Total Cost ($) |
|------------|-------------|-----------------|-------------------|----------------|
| Jan. 20 | Purchased | 430 units | $7 | $3,010 |
| Apr. 21 | Purchased | 230 units | $9 | $2,070 |
| July 25 | Purchased | 310 units | $12 | $3,720 |
| Sept. 19 | Purchased | 120 units | $14 | $1,680 |
During the year, The Shirt Shop sold 900 T-shirts for $23 each.
### Required
Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. *Round cost per unit to 2 decimal places and final answers to the nearest whole dollar.*
**Explanation of any charts, graphs, or diagrams:**
The table above provides a detailed list of T-shirt purchases made by The Shirt Shop throughout its first year of operations, including the date of purchase, the number of units purchased, the cost per unit, and the total cost per transaction.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb75e2346-ebf2-4e14-802c-14c74b6109ef%2F4df12248-2319-4e05-a1bb-b7ed120526c5%2Fss3b80r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Required Information
**[The following information applies to the questions displayed below.]**
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:
| Date | Transaction | Units Purchased | Cost per Unit ($) | Total Cost ($) |
|------------|-------------|-----------------|-------------------|----------------|
| Jan. 20 | Purchased | 430 units | $7 | $3,010 |
| Apr. 21 | Purchased | 230 units | $9 | $2,070 |
| July 25 | Purchased | 310 units | $12 | $3,720 |
| Sept. 19 | Purchased | 120 units | $14 | $1,680 |
During the year, The Shirt Shop sold 900 T-shirts for $23 each.
### Required
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 cost per unit to 2 decimal places and final answers to the nearest whole dollar.*
**Explanation of any charts, graphs, or diagrams:**
The table above provides a detailed list of T-shirt purchases made by The Shirt Shop throughout its first year of operations, including the date of purchase, the number of units purchased, the cost per unit, and the total cost per transaction.
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