Exercise $5-5$A $($Algo$)$ Effect of inventory cost flow on ending inventory balance and gross margin LO $5-1$

Skip to question

$[$The following information applies to the questions displayed below.$]$

The Shirt Shop had the following transactions for T$-$shirts for Year $1,$ its first year of operations.

January $20$ Purchased $600$ units @ $ $7=$ $$4,200$

April $21$ Purchased $400$ units @ $$9=3,600$

July $25$ Purchased $480$ units @ $$12=5,760$

September $19$ Purchased $290$ units @ $$14=4,060$

During the year, The Shirt Shop sold $1,410$ T$-$shirts for $$23$ each. Record the above transactions in general journal form and post to T$-$accounts assuming $(1)$ FIFO, $(2)$ LIFO, and $(3)$ weighted$-$average methods. Use a separate set of journal entries and T$-$accounts for each method. Assume all transactions are cash transactions. $1)$Record the above transactions in general journal form using FIFO method. Assume all transactions are cash transactions. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)2)$Record the above transactions in general journal form using LIFO method. Assume all transactions are cash transactions. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)3)$Record the above transactions in general journal form using weighted average method. Assume all transactions are cash transactions. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round cost per unit to $2$ decimal places and final answers to the nearest whole dollar amount.$)4)$Post to T$-$accountPost to T$-$accounts using LIFO method. Assume all transactions are cash transactions. $5)$Post to T$-$accounts using weighted average method. Assume all transactions are cash transactions. $($Round cost per unit to $2$ decimal places and final answers to the nearest whole dollar amount.$)$