Question: Problem Describe three inventory cost flow assumptions and how they impact the financial statements. 1. 2. Beginning inventory, purchases and sales data for T-shirts are

Problem Describe three inventory cost flow assumptions and how they impact the financial statements. 1. 2. Beginning inventory, purchases and sales data for T-shirts are as follows: 24 units@ 26 units 36 units 18 units 20 units Apr 3 11 Inventory Purchase $10 $12 14 Sale 21 Purchase Sale $15 25 Patual Assuming the business maintains a pastic inventory system, calculate the cost of merchandise s ending inventory under the following assumptions: a. FIFO b. LIFO c. Average cost (round cost of merchandise sold and ending inventory to the nearest dollar)

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