Question
In: Accounting
The Shirt Shop had the following transactions for T-shirts for Year 1. its first year of operations:
The Shirt Shop had the following transactions for T-shirts for Year 1. its first year of operations:
During the year, The Shirt Shop sold 960 T-shirts for $25 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. (Round cost per unit to 2 decimal places and final answers to the nearest whole dollar amount.)
Solutions
Expert Solution
a.
Workings:
Ending inventory- FIFO:
Ending inventory = Cost of goods available for sale - Cost of goods sold = $13,660 - $10,440 = $3,220
Ending inventory- LIFO:
Ending inventory = Cost of goods available for sale - Cost of goods sold = $13,660 - $11,770 = $1,890
Ending inventory- Weighted average:
Ending inventory = Cost of goods available for sale - Cost of goods sold = $13,660 - $11,213 = $2,447
ekkarill92 answered 2 years agoRelated Solutions
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations
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...
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 400 units 8$3,200 Apr. 21 Purchased 200 units @ $10= 2,000 July 25Purchased 280 units e 13 3,640 Sept. 19 Purchased 90 units 151,350 During the year, The Shirt Shop sold 810 T-shirts for $20 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,...
The Shirt Shop had the following transactions for T-shirts for 2016, its first year of operations:...
The Shirt Shop had the following transactions for T-shirts for
2016, its first year of operations:
Jan. 20
Purchased
460 units @ $8
=
$
3,680
Apr. 21
Purchased
260 units @ $10
=
2,600
July 25
Purchased
340 units @ $13
=
4,420
Sept. 19
Purchased
150 units @ $15
=
2,250
During the year, The Shirt Shop sold 990 T-shirts for $24
each.
Required
a.
Compute the amount of ending inventory The Shirt Shop would...
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
400
units
@
$
4
=
$
1,600
Apr. 21
Purchased
90
units
@
$
5
=
450
July 25
Purchased
250
units
@
$
7
=
1,750
Sept. 19
Purchased
60
units
@
$
9
=
540
During the year, The Shirt Shop sold 650 T-shirts for $14
each.
Required
a. Compute the amount of ending inventory The
Shirt Shop...
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 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 $18
each.
Compute the difference in gross margin between the FIFO and LIFO...
The Shirt Shop had the following transactions for T-shirts for 2016, its first year of operations:...
The Shirt Shop had the following transactions for T-shirts for
2016, its first year of operations:
Jan. 20 Purchased 420 units @ $8 = $ 3,360
Apr. 21 Purchased 220 units @ $10 = 2,200
July 25 Purchased 300 units @ $13 = 3,900
Sept. 19 Purchased 110 units @ $15 = 1,650
During the year, The Shirt Shop sold 870 T-shirts for $24
each.
a. Compute the amount of ending inventory The Shirt Shop would
report on the balance...
The Shirt Shop had the following transactions for T-shirts for 2016, its first year of operations:...
The Shirt Shop had the following transactions for T-shirts for
2016, its first year of operations: Jan. 20 Purchased 590 units @
$8 = $ 4,720 Apr. 21 Purchased 390 units @ $10 = 3,900 July 25
Purchased 470 units @ $13 = 6,110 Sept. 19 Purchased 280 units @
$15 = 4,200 During the year, The Shirt Shop sold 1,380 T-shirts for
$24 each. 7. Required information Required a.Compute the amount of
ending inventory The Shirt Shop would report...
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 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 $18 each.
Compute the difference in GROSS MARGIN between the FIFO and LIFO...
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 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 $18
each.
Compute the amount of ending inventory The Shirt Shop would
report...
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
--------------------------------------------------------------------------------------------------------------------------------------------
b. Compute the difference in gross margin
between the FIFO...
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