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The Shirt Shop had the following transactions for T-shirts for 2016, its first year of operations:

Jan. 20	Purchased	570 units @ $10	=	$	5,700
Apr. 21	Purchased	370 units @ $12	=		4,440
July 25	Purchased	450 units @ $15	=		6,750
Sept. 19	Purchased	260 units @ $17	=		4,420

During the year, The Shirt Shop sold 1,320 T-shirts for $26 each.

3. value:

1.66 points Required information

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 cost per unit to 2 decimal places and final answers to the nearest whole dollar amount.)

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4. value:

1.66 points Required information

b.

Record the above transactions in general journal form and post to T-accounts using (1) FIFO, (2) LIFO, and (3) weighted average. Use a separate set of journal entries and T-accounts for each 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.)

1.	FIFO Sales and Cost of goods sold

2.	LIFO Sales and Cost of goods sold

3.	Weighted average Sales and Cost of goods sold

1.

FIFO

2.

LIFO

3.	Weighted Average

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5. value:

1.66 points Required information

c.	Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.