The Shirt Shop had the following transactions for T-shirts for 2016, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 400 units @ $8= $3,200 200 units @ $10 = 2,000 FIFO LIFO 280 units @ $13 = 90 units @ $20= During the year, The Shirt Shop sold 810 T-shirts for $20 each. $ $ Weighted Average $ 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 cost per unit to 2 decimal places and final answers to the nearest whole dollar amount.) Ending Inventory 3,640 1,800 4,530 1,280 1,755

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Shirt Shop had the following transactions for T-shirts for 2016, its first year of operations:
Jan. 20
Apr. 21
July 25
Sept. 19
Purchased
Purchased
Purchased
Purchased
During the year, The Shirt Shop sold 810 T-shirts for $20 each.
400 units @ $8= $3,200
200 units @ $10 =
2,000
280 units @ $13 =
3,640
90 units @ $20=
1,800
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 cost per
unit to 2 decimal places and final answers to the nearest whole dollar amount.)
FIFO
LIFO
Weighted Average
Ending
Inventory
$
$
$
4,530
1,280
1,755
Transcribed Image Text:The Shirt Shop had the following transactions for T-shirts for 2016, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased During the year, The Shirt Shop sold 810 T-shirts for $20 each. 400 units @ $8= $3,200 200 units @ $10 = 2,000 280 units @ $13 = 3,640 90 units @ $20= 1,800 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 cost per unit to 2 decimal places and final answers to the nearest whole dollar amount.) FIFO LIFO Weighted Average Ending Inventory $ $ $ 4,530 1,280 1,755
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