Che The following information applies to the questions displayed hyv The Shirt S

Question

Che The following information applies to the questions displayed hyv The Shirt Shop had the following transactions for T-shirts for 2018, ts frst year of operations Jan. 28 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased 330 units s0 units s1se 210 units $132,730 60 uni $18H$3,386 @ $11 its e $24840 During the year. The Shirt Shop sold 520 T-shirts for $19 each. Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet assuming the following cost flow aces an to the nearest whole dollar amount. FIFO LIFO Weighted Average Ending inventory

Explanation / Answer

Units Unit cost Total 20-Jan 330 10 3300 21-Apr 80 11 880 25-Jul 210 13 2730 19-Sep 60 14 840 Total 680 7750 Ending inventory units = 680-520 = 160 Average cost = 7750/680= $11.40 a Ending inventory: FIFO 2140 =(60*14)+(100*13) LIFO 1600 =160*10 FIFO 1824 =160*11.4

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