Question
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased 490 units @ $ 8
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:
| Jan. 20 | Purchased | 490 | units | @ | $ | 8 | = | $ | 3,920 | |
| Apr. 21 | Purchased | 290 | units | @ | $ | 10 | = | 2,900 | ||
| July 25 | Purchased | 370 | units | @ | $ | 13 | = | 4,810 | ||
| Sept. 19 | Purchased | 180 | units | @ | $ | 15 | = | 2,700 | ||
During the year, The Shirt Shop sold 1,080 T-shirts for $24 each.
c. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.
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ICSA Study Text In Management Accounting
Authors: Richard Lyall
4th Edition
186072308X, 978-1860723087
