The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of...

 

Transcribed Image Text:

The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations. January 20 April 21 July 25 September 19 Purchased 430 units @S7 = Purchased 230 units @ $9 = Purchased 310 units @ $12 = Purchased 120 units @ $14 = $3,010 2,070 3,720 1,680 During the year, The Shirt Shop sold 900 T-shirts for $23 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 The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations. January 20 April 21 July 25 September 19 Purchased 430 units @ $7 = Purchased 230 units @ $9 = Purchased 310 units @ $12 = Purchased 120 units @ $14 = $3,010 2,070 3,720 1,680 During the year, The Shirt Shop sold 900 T-shirts for $23 each. 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 The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations. January 20 April 21 July 25 September 19 Purchased 430 units @S7 = Purchased 230 units @ $9 = Purchased 310 units @ $12 = Purchased 120 units @ $14 = $3,010 2,070 3,720 1,680 During the year, The Shirt Shop sold 900 T-shirts for $23 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 The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations. January 20 April 21 July 25 September 19 Purchased 430 units @ $7 = Purchased 230 units @ $9 = Purchased 310 units @ $12 = Purchased 120 units @ $14 = $3,010 2,070 3,720 1,680 During the year, The Shirt Shop sold 900 T-shirts for $23 each. 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 The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations. January 20 April 21 July 25 September 19 Purchased 430 units @S7 = Purchased 230 units @ $9 = Purchased 310 units @ $12 = Purchased 120 units @ $14 = $3,010 2,070 3,720 1,680 During the year, The Shirt Shop sold 900 T-shirts for $23 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 The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations. January 20 April 21 July 25 September 19 Purchased 430 units @ $7 = Purchased 230 units @ $9 = Purchased 310 units @ $12 = Purchased 120 units @ $14 = $3,010 2,070 3,720 1,680 During the year, The Shirt Shop sold 900 T-shirts for $23 each. 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 The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations. January 20 April 21 July 25 September 19 Purchased 430 units @S7 = Purchased 230 units @ $9 = Purchased 310 units @ $12 = Purchased 120 units @ $14 = $3,010 2,070 3,720 1,680 During the year, The Shirt Shop sold 900 T-shirts for $23 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 The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations. January 20 April 21 July 25 September 19 Purchased 430 units @ $7 = Purchased 230 units @ $9 = Purchased 310 units @ $12 = Purchased 120 units @ $14 = $3,010 2,070 3,720 1,680 During the year, The Shirt Shop sold 900 T-shirts for $23 each. 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

Answer rating: 100% (QA)

Part a The value of ending inventory under each method is calculated as below The quantity ... View the full answer