The Shirt Shop had the following transactions for T-shirts for Year 1, its first year...
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The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: January 20 Purchased 330 units e $5 $1,650 April 21 Purchased 90 units Q $6 = 548 July 25 Purchased 210 units e $8 = 1,68 theta September 19 Purchased 80 units e $10 z= 800 During the year, The Shirt Shop sold 530 T-shirts for $15 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. b. Compute the difference in gross margin between the FFO and LFO cost flow assumptions. Answer is complete but not entirely correct. Complete this
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