Question
The Shirt shop had the following transactions for T-shirts for Year 1, its first year operations Jan. 20. Purchased. 400 units. @ $8=$3,200 April 21
The Shirt shop had the following transactions for T-shirts for Year 1, its first year operations
Jan. 20. Purchased. 400 units. @ $8=$3,200
April 21 Purchased 150 units @ $10=1,500
July 25 Purchased 200 units @$12 = 2,400
Sept. 19 Purchased 100 Units @$14- 1,400
During the year, The Shirt Shop sold 650 T-Shirts for $19 each
a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: FIFO, LIFO and weighted average
b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.
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Financial Accounting For Executives And MBAs
Authors: Paul Simko, James Wallace, Joseph Comprix
5th Edition
1618533665, 9781618533661
