The Shirt Shop had the following transactions for T-shirts for Year 1, its first year...
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Accounting
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:
Jan. 20
Purchased
510
units
@
$
9
=
$
4,590
Apr. 21
Purchased
310
units
@
$
11
=
3,410
July 25
Purchased
390
units
@
$
14
=
5,460
Sept. 19
Purchased
200
units
@
$
16
=
3,200
During the year, The Shirt Shop sold 1,140 T-shirts for $25 each.
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 510 units @ $ 9 = $4,590 310 units @ $ 11 = 3,410 390 units @ $ 14 = 5,460 200 units @ $ 16 = 3,200 During the year, The Shirt Shop sold 1,140 T-shirts for $25 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
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