i.7 The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:January 20April 21July 25330 units @140 units @250 units @@September 1990 unitsDuring the year, The Shirt Shop sold 630 T-shirts for $21 each.Requireda. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flowassumptions:PurchasedPurchasedPurchasedPurchasedRequired A(1) FIFO(2) LIFO and(3) weighted averageb. 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 marginRequired BFIFO$9,270$12$13$14$16Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.LIFO||||||Difference< Required A$3,9601,8203,5001,440Required B

Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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