In: Accounting
The Shirt Shop had the following transactions for T-shirts for
Year 1, its first year of operations:
Jan. 20 | Purchased | 490 | units | @ | $ | 8 | = | $ | 3,920 | |
Apr. 21 | Purchased | 290 | units | @ | $ | 10 | = | 2,900 | ||
July 25 | Purchased | 370 | units | @ | $ | 13 | = | 4,810 | ||
Sept. 19 | Purchased | 180 | units | @ | $ | 15 | = | 2,700 | ||
During the year, The Shirt Shop sold 1,080 T-shirts for $24
each.
b. Record the above transactions in general journal form and post to T-accounts using (1) FIFO, (2) LIFO, and (3) weighted average. Use a separate set of journal entries and T-accounts for each method. Assume all transactions are cash transactions.
----->>>>>T CHARTS OF GJ FIFO, GJ LIFO, GJ WA, GJ ACC FIFO, GJ ACC LIFO, GJ ACC WA.
FIFO Method
Date | Particulars | Debit ($) | Credit($) |
Jan20 | Inventory | 3920 | |
Cash | 3920 | ||
purchased T-shirts 490 @$8 | |||
April21 | Inventory | 2900 | |
Cash | 2900 | ||
purchased T-shirts 290 @ $10 | |||
25 Jul | Inventory | 4810 | |
Cash | 4810 | ||
purchased T-shirts 370 @ $13 | |||
Sep 19 | Inventory | 2700 | |
Cash | 2700 | ||
purchased T-shirts 180 @ $15 | |||
dec 31 | Cash | 25920 | |
Sales | 25920 | ||
Sales T-shirts 1080 @ $24 | |||
Dec31 | Cast of goods Sold | 10720 | |
Inventory | 10720 | ||
Cost of goods Sold (490 @$8+290 @ $10+300 @ $13) (3920+2900+3900)=10720 |
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Inventory Ledger
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Cash Ledger
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$19430 |
Sales Ledger
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Cast of goods Sold Ledger
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LIFO Method
Date | Particulars | Debit ($) | Credit($) |
Jan20 | Inventory | 3920 | |
Cash | 3920 | ||
purchased T-shirts 490 @$8 | |||
April21 | Inventory | 2900 | |
Cash | 2900 | ||
purchased T-shirts 290 @ $10 | |||
25 Jul | Inventory | 4810 | |
Cash | 4810 | ||
purchased T-shirts 370 @ $13 | |||
Sep 19 | Inventory | 2700 | |
Cash | 2700 | ||
purchased T-shirts 180 @ $15 | |||
dec 31 | Cash | 25920 | |
Sales | 25920 | ||
Sales T-shirts 1080 @ $24 | |||
Dec31 | Cast of goods Sold | 12330 | |
Inventory | 12330 | ||
Cost of goods Sold (180 @ $15+370 @ $13+290 @ $10+240 @$8) (2700+4810+2900+12330)=12330 |
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Inventory Ledger
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Cash Ledger
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19-Sep 31- Dec |
25920 |
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$19430 |
Sales Ledger
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Cast of goods Sold Ledger
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Weighted Average Method
Date | Particulars | Debit ($) | Credit($) | |
Jan20 | Inventory | 3920 | ||
Cash | 3920 | |||
purchased T-shirts 490 @$8 | ||||
April21 | Inventory | 2900 | ||
Cash | 2900 | |||
purchased T-shirts 290 @ $10 | ||||
25 Jul | Inventory | 4810 | ||
Cash | 4810 | |||
purchased T-shirts 370 @ $13 | ||||
Sep 19 | Inventory | 2700 | ||
Cash | 2700 | |||
purchased T-shirts 180 @ $15 | ||||
dec 31 | Cash | 25920 | ||
Sales | 25920 | |||
Sales T-shirts 1080 @ $24 | ||||
Dec31 | Cast of goods Sold |
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Inventory |
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Cost of goods Sold (1080 @ $11) Average=14330/1330=$10 | ||||
Inventory Ledger
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Cash Ledger
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25920 |
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Sales Ledger
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Cast of goods Sold Ledger
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