Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below.j The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased 500 units @ $7=$3,500 Apr. 21 Purchased 300 units 2 $ 92,700 July 25 Purchased 380 units 124,560 Sept. 19 Purchased 190 units 14 2,660 During the year, The Shirt Shop sold 1,110 T-shirts for $23 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 Complete this question by entering your answers in the tabs below. Required B G] Required B GJ Required B GJ Required B T Required BT Acc LIFC Required BT Acc WA Required B FIFO LIFO WA Acc FIFC Record the above transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 4 Record the entry for purchase of inventory for cash on January 20 Note: Enter debits before credits Date General Journal Debit Credit Jan. 20

Explanation / Answer

If FIFO Method is used T-shirts of 500 were sold from purchase on Jan 20, 300 were sold from purchased on Apr 21, 310 were sold from July 25 COGS 500*7 3500 300*9 2700 310*12 3720 9920 Ending Inventory 70*12 840 190*14 2660 3500 Date Transaction Debit Credit 20-Jan Merchandise Inventory 3500 To Cash 3500 21-Apr Merchandise Inventory 2700 To Cash 2700 25-Jul Merchandise Inventory 4560 To Cash 4560 19-Sep Merchandise Inventory 2660 To Cash 2660 Cost of Goods Sold 9920 To Merchandise Inventory 9920 Cash 25530 To Sales 25530 Merchandise Inventory Debit Credit Cash 3500 Cost of Goods Sold 9920 Cash 2700 Cash 4560 Cash 2660 Bal 3500 13420 13420 Cost of Goods Sold Merchandise Inventory 9920 Bal 9920 Sales Cash 25530 Bal 25530 25530 25530 Cash Sales 25530 Merchandise Inventory 3500 Merchandise Inventory 2700 Merchandise Inventory 4560 Merchandise Inventory 2660 Bal 12110 25530 25530 If LIFO Method is used T-shorts of 190 sold from 19-Sept, 380 from July 25,300 from Apr 21, 240 from Jan 20 COGS 190*14 2660 380*12 4560 300*9 2700 240*7 1680 11600 Ending Inventory 260*7 1820 1820 Date Transaction Debit Credit 20-Jan Merchandise Inventory 3500 To Cash 3500 21-Apr Merchandise Inventory 2700 To Cash 2700 25-Jul Merchandise Inventory 4560 To Cash 4560 19-Sep Merchandise Inventory 2660 To Cash 2660 Cost of Goods Sold 11600 To Merchandise Inventory 11600 Cash 25530 To Sales 25530 Merchandise Inventory Debit Credit Cash 3500 Cost of Goods Sold 11600 Cash 2700 Cash 4560 Cash 2660 Bal 1820 13420 13420 Cost of Goods Sold Merchandise Inventory 11600 Bal 11600 Sales Cash 25530 Bal 25530 25530 25530 Cash Sales 25530 Merchandise Inventory 3500 Merchandise Inventory 2700 Merchandise Inventory 4560 Merchandise Inventory 2660 Bal 12110 25530 25530 If Weighted Average is used Weighted average - (3500+2700+4560+2660)/(500+300+380+190) 9.79562 COGS 1110*9.80 10873.14 Ending Inventory 260*9.8 2546.86 2546.861314 Date Transaction Debit Credit 20-Jan Merchandise Inventory 3500 To Cash 3500 21-Apr Merchandise Inventory 2700 To Cash 2700 25-Jul Merchandise Inventory 4560 To Cash 4560 19-Sep Merchandise Inventory 2660 To Cash 2660 Cost of Goods Sold 10873.14 To Merchandise Inventory 10873.14 Cash 25530 To Sales 25530 Merchandise Inventory Debit Credit Purchases (1370*9.80) 13420 Cost of Goods Sold 10873.14 Bal 2546.86 13420 13420 Cost of Goods Sold Merchandise Inventory 10873.14 Bal 10873.14 Sales Cash 25530 Bal 25530 25530 25530 Cash Sales 25530 Merchandise Inventory 3500 Merchandise Inventory 2700 Merchandise Inventory 4560 Merchandise Inventory 2660 Bal 12110 25530 25530

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