The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:Jan. 20Apr. 21July 25Sept. 19PurchasedPurchasedPurchasedPurchasedRequired ADuring the year, The Shirt Shop sold 810 T-shirts for $20 each.Requireda. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flowassumptions: (1) FIFO, (2) LIFO, and (3) weighted average.b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.400 units200 units280 units90 unitsComplete this question by entering your answers in the tabs below.Required BEnding inventory@@FIFO$8 = $3,200$10 =2,000$13 =3,640$15 =1,350Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flowassumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round intermediate calculations to 2 decimal places and finalanswers to nearest whole dollar amount.)LIFOWeightedAverage< Required ARequired B >

Under the FIFO method, the oldest products in inventory are sold first. Under the LIFO method, the…

The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased Required A Required B 400 units 200 units 280 units 90 units During the year, The Shirt Shop sold 810 T-shirts for $20 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 @ $8 = @ $10 = @ $13 = @ $15 = FIFO 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 nearest whole dollar amount.) $3,200 2,000 3,640 1,350 LIFO Weighted Average

The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased Required A Required B 400 units 200 units 280 units 90 units During the year, The Shirt Shop sold 810 T-shirts for $20 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 @ $8 = @ $10 = @ $13 = @ $15 = FIFO 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 nearest whole dollar amount.) $3,200 2,000 3,640 1,350 LIFO Weighted Average

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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