Home / Questions / The shirt shop had the following transactions for T-shirts for 2016 its first year of oper...

The shirt shop had the following transactions for T-shirts for 2016 its first year of operations Jan 20 Purchased 400 units @ $ 8 $3200 Apr 21 purchased 200 units

The shirt shop had the following transactions for T-shirts for 2016, it,s first year of operations: Jan. 20 Purchased 400 units @ $ 8 = $3,200 Apr. 21 purchased 200 units@ $10 = $ 2,000 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 $30 each. a. Compute the amount of ending inventory the shirt shop would report on the balance sheet, assuming the following cost flow assumption (1) FIFO (2) LIFO (3) weighted average b. Record the above transactions in general journal form and post to T- account assuming the FIFO, LIFO, weighted average methods. Use a separate set of journal entries and T-accounts for each method . Assume all transactions are cash transactions c. Compute the difference in gross margin between the FIFO AND LIFO cost flow assumption

Apr 10 2020 Read more Less More

Answer (Solved)

question Subscribe To Get Solution

Recent Questions

Chat Now

Welcome to Live Chat

Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.

Please fill in the form