The Shirt Shop had the following transactions for T-shirts for2018, its first year of...

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Accounting

The Shirt Shop had the following transactions for T-shirts for2018, 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 $18each.
Compute the amount of ending inventory The Shirt Shop wouldreport on the balance sheet, assuming the following cost flowassumptions: (1) FIFO, (2) LIFO, and (3) weighted average

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Answer 1 Under FIFO method inventory from old purchases is sold first Calculation of ending inventory using FIFO Total Purchase cost 908000 Less Cost of goods sold 420 units x 9 378000 150 units x 10 150000 See Answer

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In: AccountingThe Shirt Shop had the following transactions for T-shirts for2018, its first year of operations:...The Shirt Shop had the following transactions for T-shirts for2018, its first year of operations:Jan. 20 Purchased 420 units @ $ 9 = $ 3,780Apr. 21 Purchased 150 units @ $ 10 = 1,500July 25 Purchased 230 units @ $ 12 = 2,760Sept. 19 Purchased 80 units @ $ 13 = 1,040During the year, The Shirt Shop sold 730 T-shirts for $18each.Compute the amount of ending inventory The Shirt Shop wouldreport on the balance sheet, assuming the following cost flowassumptions: (1) FIFO, (2) LIFO, and (3) weighted average