The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:
Question:
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:
During the year, The Shirt Shop sold 810 T-shirts for $20 each.
Required
a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average, rounded to two decimal places.
b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.
Transcribed Image Text:
Purchased 400 units @$ 8 Purchased 200 units @ $10 Purchased 280 units @ $13 Purchased 90 units @ $15 $3,200 2,000 3,640 1,350 Jan, 20 Apr. 21 July 25 Sept. 19 I||| || ||
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The Shirt Shop Summary of Purchase Transactions 120 Purchased Units 400 8 3200 421 Purchased Units 2...View the full answer
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Related Book For
Survey Of Accounting
ISBN: 9781260575293
6th Edition
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds
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