Question

In: Accounting

The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations:...

The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations:

Jan. 20 Purchased 370 units @ $ 12 = $ 4,440
Apr. 21 Purchased 140 units @ $ 13 = 1,820
July 25 Purchased 220 units @ $ 15 = 3,300
Sept. 19 Purchased 100 units @ $ 16 = 1,600

During the year, The Shirt Shop sold 690 T-shirts for $21 each

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b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.

FIFO LIFO Difference
gross margin

Solutions

Expert Solution

Note: Following problem is done based on periodic method

ekkarill92 answered 4 months ago
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