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

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

January 20	Purchased 440 units @ $9 =	$ 3,960
April 21	Purchased 130 units @ $11 =	1,430
July 25	Purchased 240 units @ $12 =	2,880
September 19	Purchased 70 units @ $13 =	910

During the year, The Shirt Shop sold 710 T-shirts for $18 each.

Exercise 5-5 (Algo) Part a

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.

Note: Round intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount.