70.2K

Verified Solution

Link Copied!

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.

PART I.) 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.)

PART II.) Record the above transactions in general journal form using FIFO method

PART III.) Record the above transactions in general journal form using LIFO method. Assume all transactions are cash transactions.

PART IV.) Record the above transactions in general journal form using weighted average 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. Round cost per unit to 2 decimal places and final answers to the nearest whole dollar amount.)

PART V.) post to T-accounts using FIFO method. Assume all transactions are cash transactions.

PART VI.) Post to T-accounts using LIFO method. Assume all transactions are cash transactions.

PART VII.) Post to T-accounts using weighted average method. Assume all transactions are cash transactions. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollar amount.)

Answer & Explanation Solved by verified expert

See Answer