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

Jan. 20	Purchased	460 units @ $8	=	$	3,680
Apr. 21	Purchased	260 units @ $10	=		2,600
July 25	Purchased	340 units @ $13	=		4,420
Sept. 19	Purchased	150 units @ $15	=		2,250

During the year, The Shirt Shop sold 990 T-shirts for $24 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 cost per unit to 2 decimal places and final answers to the nearest whole dollar amount.)

	Ending Inventory
FIFO
LIFO
Weighted Average

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.)

event 1: record the entry for purchase of inventory for cash on January 20

event 2: record the entry for purchase of inventory for cash on april 21

event 3: record the entry for purchase of inventory for cash on july 25

event 4: record the entry for purchase of inventory for cash on September 19

FIFO Sales and Cost of goods sold

Event 1: record the sale of inventory for cash

Event 2: Record entry for cost of goods sold

LIFO Sales and Cost of goods sold

Event 1: Record sale of inventory for cash

Event 2: Record entry for cost of goods sold

Weighted average Sales and Cost of goods sold

Event 1: record the sale of inventory for cash

Event 2: Record entry for cost of goods sold

1.

FIFO

Cash					Merchandise Inventory
Beg. Bal					Beg. Bal
End. Bal
Sales Revenue					Cost of Goods Sold
Beg. Bal					Beg. Bal
End. Bal					End. Bal

2. LIFO

Cash					Merchandise Inventory
Beg. Bal					Beg. Bal
End. Bal
Sales Revenue					Cost of Goods Sold
Beg. Bal					Beg. Bal
End. Bal					End. Bal

3.Weighted Average

Cash					Merchandise Inventory
Beg. Bal					Beg. Bal
End. Bal
Sales Revenue					Cost of Goods Sold
Beg. Bal					Beg. Bal
End. Bal					End. Bal

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

Difference in gross margin between the FIFO and LIFO cost flow assumptions