Please help answer/ fill in the chart for part a and b of this question. The Shi

Question

Please help answer/ fill in the chart for part a and b of this question.

The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: Jan. 20 Purchased 400 units 8$3,200 Apr. 21 Purchased 200 units @ $10= 2,000 July 25Purchased 280 units e 13 3,640 Sept. 19 Purchased 90 units 151,350 During the year, The Shirt Shop sold 810 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 nearest whole dollar amount.) FIFO LIFO Weighted Average Ending inventory $ 2,260 $1,280

Explanation / Answer

Units Unit cost Total 20-Jan 400 8 3200 21-Apr 200 10 2000 25-Jul 280 13 3640 19-Sep 90 15 1350 Total 970 10190 Average cost = 10190/970= $10.51 Sales = 810*20= $16200 Ending inventory units = 970-810 = 160 a Ending inventory: FIFO 2260 =(90*15)+(70*13) LIFO 1280 =160*8 Weighted average 1682 =160*10.51 b Cost of goods sold: FIFO 7930 =10190-2260 LIFO 8910 =10190-1280 Gross margin = Sales-Cost of goods sold Gross margin: FIFO 8270 =16200-7930 LIFO 7290 =16200-8910 Difference 980 =8270-7290

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