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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.

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.)

A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during a rainstorm. Prentiss also lost some of its accounting records. Prentiss must estimate the loss from the storm for insurance reporting and financial statement purposes. Prentiss uses the periodic inventory system. The following accounting information was recovered from the damaged records:

Beginning inventory	$	195,900
Purchases to date of storm		404,600
Sales to date of storm		602,500

The value of undamaged inventory counted was $89,875. Historically Prentiss gross margin percentage has been approximately 19 percent of sales.

Required

Estimate the following:

a.	Gross margin in dollars.

b.	Cost of goods sold in dollars.

c.	Ending inventory.

d.	Amount of lost inventory.

Toyland wishes to produce quarterly financial statements, but it takes a physical count of inventory

only at year-end. The following historical data were taken from the 2016 and 2017 accounting records:

	2016			2017
Net sales	$	152,000		$	185,000
Cost of goods sold		67,900			80,380

At the end of the first quarter of 2018, Toylands ledger had the following account balances:

Sales	$	240,000
Purchases		159,000
Beginning inventory 1/1/2018		63,300
Ending inventory 3/31/2018		96,700

Based on purchases and sales, the Toyland accountant thinks inventory is low.

Required

Using the information provided, estimate the following for the first quarter of 2018:

a.	Cost of goods sold. (Use average cost of goods sold percentage.) (Round your intermediate percentage values to 2 decimal places and final answers to nearest whole dollar amount.)

b.	Ending inventory at March 31 based on the historical cost of goods sold percentage.

c.	Inventory shortage