[The following information applies to the questions displayed below.] The Shirt Shop had the following...
70.2K
Verified Solution
Link Copied!
Question
Accounting
[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.
January 20
Purchased 600 units @ $ 7 =
$4,200
April 21
Purchased 400 units @ $9 =
3,600
July 25
Purchased 480 units @ $12 =
5,760
September 19
Purchased 290 units @ $14 =
4,060
During the year, The Shirt Shop sold 1,410 T-shirts for $23 each.
Requireda. 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 AVG=
2. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
