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The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: @ January 20 April 21 July 25 September 19 Purchased Purchased Purchased Purchased $12 $13 330 units 140 units @ 250 units @ 90 units @ $14 = $16 = During the year, The Shirt Shop sold 630 T-shirts for $21 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 Gross margin Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. FIFO $ 9,270 = LIFO Difference < Required A $3,960 1,820 3,500 1,440 Required B

The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: @ January 20 April 21 July 25 September 19 Purchased Purchased Purchased Purchased $12 $13 330 units 140 units @ 250 units @ 90 units @ $14 = $16 = During the year, The Shirt Shop sold 630 T-shirts for $21 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 Gross margin Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. FIFO $ 9,270 = LIFO Difference < Required A $3,960 1,820 3,500 1,440 Required B

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: January 20 April 21 July 25 330 units @ 140 units @ 250 units @ @ September 19 90 units During the year, The Shirt Shop sold 630 T-shirts for $21 each. Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: Purchased Purchased Purchased Purchased Required A (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. Gross margin Required B FIFO $9,270 $12 $13 $14 $16 Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. LIFO |||||| Difference < Required A $3,960 1,820 3,500 1,440 Required B
Transcribed Image Text:The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: January 20 April 21 July 25 330 units @ 140 units @ 250 units @ @ September 19 90 units During the year, The Shirt Shop sold 630 T-shirts for $21 each. Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: Purchased Purchased Purchased Purchased Required A (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. Gross margin Required B FIFO $9,270 $12 $13 $14 $16 Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. LIFO |||||| Difference < Required A $3,960 1,820 3,500 1,440 Required B
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