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hi, please give me the correct answers! Required information Exercise 5-5 (Algo) Effect of Inventory cost flow on ending inventory balance and gross margin LO
hi, please give me the correct answers!
Required information Exercise 5-5 (Algo) Effect of Inventory cost flow on ending inventory balance and gross margin LO 5-1 [The following information applies to the questions displayed below) The Shirt Shop hod the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 400 unit @ $ 4 - $1,600 90 units # $5 450 250 units $7 - 1,750 60 units $9- 540 During the year, The Shirt Shop sold 650 T-shirts for $14 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. (Round intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount.) FIFO LIFO Weighted Average Ending Inventory Exercise 5-5 (Algo) Part 6 b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. FIFO LIFO Difference Gross margin Step by Step Solution
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