0 Required information The following information applies to the questions displa

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0 Required information The following information applies to the questions displayed below The Shirt Shop had the following transactions for T-shirts for 2018, ts first year of operations 2 Jan. 20 Purchased 400 units 3,200 Apr. 21 Purchased 200 units 102,000 July 25 Purchased 280 units 13 3,640 Sept. 19 Purchased 90 units 15 1,350 During the year, The Shirt Shop sold 810 T-shirts for $2O 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 intermediate calculations and final answers to nearest whole dollar amount.) FIFO LIFO Ending inventory

Explanation / Answer

Solution a1:

Ending inventory - FIFO = $2,260

Ending inventory - LIFO = $1,280

Ending inventory - Average Cost = $1,681

Solution b:

Computation of COGS and ending inventory - Periodic FIFO Particulars Cost of goods available for sale Cost of goods sold Ending Inventory Nos of units Unit Cost Cost of goods available for sale Nos of units sold Unit Cost Cost of goods sold Nos of units in ending inventory Unit Cost Ending inventory Purchases: 20-Jan 400 $8.00 $3,200 400 $8.00 $3,200.00 21-Apr 200 $10.00 $2,000 200 $10.00 $2,000.00 25-Jul 280 $13.00 $3,640 210 $13.00 $2,730.00 70 $13.00 $910.00 19-Sep 90 $15.00 $1,350 90 $15.00 $1,350.00 Total 970 $10,190 810 $7,930.00 160 $2,260.00

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