The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased Required A Required B 400 units 200 units 280 units 90 units 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, (2) LIFO, and (3) weighted average. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Complete this question by entering your answers in the tabs below. Ending inventory @ $8 = @ $10 = @ $13 = @ $15 = FIFO 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 intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount.) $3,200 2,000 3,640 1,350 LIFO Weighted Average
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased Required A Required B 400 units 200 units 280 units 90 units 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, (2) LIFO, and (3) weighted average. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Complete this question by entering your answers in the tabs below. Ending inventory @ $8 = @ $10 = @ $13 = @ $15 = FIFO 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 intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount.) $3,200 2,000 3,640 1,350 LIFO Weighted Average
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter7: Inventory Cost Flow Assumptions (fifolifo)
Section: Chapter Questions
Problem 9R: Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a...
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Step 1: Introduction
VIEWStep 2: Computation of dollar value of ending inventory using the FIFO method:
VIEWStep 3: Computation of dollar value of ending inventory using the LIFO method:
VIEWStep 4: Computation of dollar value of ending inventory using the weighted average method:
VIEWStep 5: Computation of the difference in gross margin between the FIFO and LIFO cost flow assumptions
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