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The Shirt Shop had the following transactions for T-shirts for2018, its first year of...

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Accounting

The Shirt Shop had the following transactions for T-shirts for2018, its first year of operations:

Jan. 20 Purchased 420 units @ $ 9 = $ 3,780

Apr. 21 Purchased 150 units @ $ 10 = 1,500

July 25 Purchased 230 units @ $ 12 = 2,760

Sept. 19 Purchased 80 units @ $ 13 = 1,040

During the year, The Shirt Shop sold 730 T-shirts for $18each.

Compute the amount of ending inventory The Shirt Shop wouldreport on the balance sheet, assuming the following cost flowassumptions: (1) FIFO, (2) LIFO, and (3) weighted average

Answer & Explanation Solved by verified expert
4.2 Ratings (708 Votes)
Answer 1 Under FIFO method inventory from old purchases is sold first Calculation of ending inventory using FIFO Total Purchase cost 908000 Less Cost of goods sold 420 units x 9 378000 150 units x 10 150000    See Answer
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In: AccountingThe Shirt Shop had the following transactions for T-shirts for2018, its first year of operations:...The Shirt Shop had the following transactions for T-shirts for2018, its first year of operations:Jan. 20 Purchased 420 units @ $ 9 = $ 3,780Apr. 21 Purchased 150 units @ $ 10 = 1,500July 25 Purchased 230 units @ $ 12 = 2,760Sept. 19 Purchased 80 units @ $ 13 = 1,040During the year, The Shirt Shop sold 730 T-shirts for $18each.Compute the amount of ending inventory The Shirt Shop wouldreport on the balance sheet, assuming the following cost flowassumptions: (1) FIFO, (2) LIFO, and (3) weighted average

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