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Accounting
Required information
[The following information applies to the questions displayed below.]
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.
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.)
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