Question

Required information [The following information applies to the questions displayed below.) The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased 400 units @ $ 8 = $3,200 Purchased 200 units @ $10 = 2,000 Purchased 280 units @ $13 = 3,640 Purchased 90 units @ $15 = 1,350 During the year, The Shirt Shop sold 810 T-shirts for $20 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 Required B G FIFO Required B G LIFO Required B G WA Required BT Required BT Required BT Acc FIFO Acc LIFO Acc WA 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

Answer 1

FIFO METHOD
SALES
DATE	GENERAL JOURNAL		DR	CR
31-Dec	CASH A/C DR	810 X 20	16200
	TO SALES			16200
COST OF GOODS SOLD
DATE	GENERAL JOURNAL		DR	CR
20-Jan	COST OF GOODS SOLD DR	400 X 8	3200
	TO INVENTORY			3200
21-Apr	COST OF GOODS SOLD DR	200 X 10	2000
	TO INVENTORY			2000
25-Jul	COST OF GOODS SOLD DR	210 X 13	2730
	TO INVENTORY			2730
NOTE - ASSUMING ALL PURCHASE ARE TRANSFERRED TO INVENTORY FIRST

LIFO METHOD
SALES
DATE	GENERAL JOURNAL		DR	CR
31-Dec	CASH A/C DR	810 X 20	16200
	TO SALES			16200
COST OF GOODS SOLD
DATE	GENERAL JOURNAL		DR	CR
31-Dec	COST OF GOODS SOLD DR	90 X 15	1350
	TO INVENTORY			1350
31-Dec	COST OF GOODS SOLD DR	280 X 13	3640
	TO INVENTORY			3640
31-Dec	COST OF GOODS SOLD DR	200 X 10	2000
	TO INVENTORY			2000
31-Dec	COST OF GOODS SOLD DR	240 X 8	1920	1920
	TO INVENTORY
NOTE - ASSUMING ALL PURCHASE ARE TRANSFERRED TO INVENTORY FIRST

WEG. AVG
SALES
DATE	GENERAL JOURNAL		DR	CR
31-Dec	CASH A/C DR	810 X 20	16200
	TO SALES			16200
COST OF GOODS SOLD
DATE	GENERAL JOURNAL		DR	CR
31-Dec	COST OF GOODS SOLD DR	400 X 10.505	4202
	TO INVENTORY			4202
31-Dec	COST OF GOODS SOLD DR	200 X 10.505	2101
	TO INVENTORY			2101
31-Dec	COST OF GOODS SOLD DR	210 X 10.505	2206.05
	TO INVENTORY			2206.05
NOTE - ASSUMING ALL PURCHASE ARE TRANSFERRED TO INVENTORY FIRST
	WEIGHTED AVG CAL
	DATE	UNITS	RATE	AMOUNT
	20-Jan	400	8	3200
	21-Apr	200	10	2000
	25-Jul	280	13	3640
	19-Sep	90	15	1350
		970		10190
	WEG AVG = TOTAL AMOUNT / TOTAL UNITS			10.5051546391753