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Required information (The following information applies to the questions displayed below.) The Shirt Shop had the following transactions for T-shirts for 2018, its first year
Required information (The following information applies to the questions displayed below.) The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: Jan. 20 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased 300 units 110 units 240 units 60 units @ @ @ @ $5 - $6 - $ 7 = $ 8- $1,500 660 1,680 480 During the year. The Shirt Shop sold 510 T-shirts for $13 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. Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount. FIFO LIFO Weighted Average Ending inventory Required information (The following information applies to the questions displayed below.) The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: Jan. 20 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased 300 units 110 units 240 units 60 units @ $5 - @ $ 6 @ $ 7 = @ $ 8 = $1,500 660 1,680 480 During the year, The Shirt Shop sold 510 T-shirts for $13 each. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. FIFO LIFO Difference Gross margin- Gross margin
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