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The Shirt Shop had the following transactions for T-shirts for Jan. 20 Purchased Apr. 21 Purchased Purchased July 25 Sept. 19 Purchased 390 units e $3= $1,170 110 units e $4= 230 units @ $6=> 90 units e $8= 440 1,380 720 During the year, The Shirt Shop sold 620 T-shirts for $13 each. Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow

The Shirt Shop had the following transactions for T-shirts for Jan. 20 Purchased Apr. 21 Purchased Purchased July 25 Sept. 19 Purchased 390 units e $3= $1,170 110 units e $4= 230 units @ $6=> 90 units e $8= 440 1,380 720 During the year, The Shirt Shop sold 620 T-shirts for $13 each. Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow

FINANCIAL ACCOUNTING
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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The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: 440 Purchased. Purchased Purchased Purchased 390 units e $3= $1,170 110 units. @ $4= @$6- $8= 1,380 230 units 90 units @ 720 Jan. 20 Apr. 21 July 25 Sept. 19 During the year, The Shirt Shop sold 620 T-shirts for $13 each. 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. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Complete this question by entering your answers in the tabs below. Required A Required B Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. FIFO LIFO Difference Gross margin < Required A Required >
Transcribed Image Text:The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: 440 Purchased. Purchased Purchased Purchased 390 units e $3= $1,170 110 units. @ $4= @$6- $8= 1,380 230 units 90 units @ 720 Jan. 20 Apr. 21 July 25 Sept. 19 During the year, The Shirt Shop sold 620 T-shirts for $13 each. 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. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Complete this question by entering your answers in the tabs below. Required A Required B Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. FIFO LIFO Difference Gross margin < Required A Required >
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: @$3 @$4 @$6 @$8- Jan. 20 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased. 390 units 110 units 230 units 90 units During the year, The Shirt Shop sold 620 T-shirts for $13 each. 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. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Complete this question by entering your answers in the tabs below. Ending inventory Required A Required B 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 the nearest whole dollar amount.) FIFO $1,170 440 1,380 720 LIFO Weighted Average Required A Required >
Transcribed Image Text:The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: @$3 @$4 @$6 @$8- Jan. 20 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased. 390 units 110 units 230 units 90 units During the year, The Shirt Shop sold 620 T-shirts for $13 each. 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. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Complete this question by entering your answers in the tabs below. Ending inventory Required A Required B 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 the nearest whole dollar amount.) FIFO $1,170 440 1,380 720 LIFO Weighted Average Required A Required >
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