Question

Required information [The following information applies to the questions displayed below.) The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: Jan. 20 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased 410 units 130 units 230 units 80 units @ @ @ @ $12 = $4,920 $13 = 1,690 $14 = 3,220 $15 = 1,200 During the year, The Shirt Shop sold 680 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. Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount. FIFO LIFO Weighted Average Ending inventory

Answer 1

The Shirt Shop
Ending Inventory	2,460	2,040	2,207

The Shirt Shop Periodic Inventory System Calculation FIFO Date Decription 20-Jan Purchase 21-Apr Purchase 25-Jul Purchase 19-Sep Purchase Goods available for sale Ending Inventory Ending Inventory Ending Inventory- total Cost of goods sold Quantity 410 130 230 80 850 80 90 170 680 Cost per unit Total cost $ 12.00 4,920 $ 13.00 1,690 $ 14.00 3,220 $ 15.00 1,200 11,030 $ 15.00 1,200 $ 14.00 1,260 2,460 8,570 Latest cost of $15 & $14 used to value inv =850-680 = 170 units =11,030-2,460 = $8,570 LIFO Date Decription 20-Jan Purchase 21-Apr Purchase 25-Jul Purchase 19-Sep Purchase Goods available for sale Ending Inventory Cost of goods sold Quantity 410 130 230 80 850 170 680 Cost per unit Total cost $ 12.00 4,920 $ 13.00 1,690 $ 14.00 3,220 $ 15.00 1,200 11,030 $ 12.00 2,040 8,990 Oldest cost of $12 used to value inv =11,030-2,040 = $8,990 Total cost 4,920 Weighted Average Date Decription 20-Jan Purchase 21-Apr Purchase 25-Jul Purchase 19-Sep Purchase Goods available for sale Ending Inventory Cost of goods sold 10 1,690 Quantity Cost per unit 410 $ 12.00 130 $ 13.00 230 $ 14.00 80 $ 15.00 850 $ 12.98 170 $ 12.98 680 3,220 1,200 11,030 2,207 8,823 =11,030/850 = $12.98 per unit