Question

# The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of...

The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:
Jan. 20 Purchased 440 units @ \$ 8 = \$ 3,520
Apr. 21 Purchased 240 units @ \$ 10 = 2,400
July 25 Purchased 320 units @ \$ 13 = 4,160
Sept. 19 Purchased 130 units @ \$ 15 = 1,950
During the year, The Shirt Shop sold 930 T-shirts for \$24 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 cost per unit to 2 decimal places and final answers to the nearest whole dollar amount.)

 Units Unit cost Total cost Jan. 20 440 8 3520 Apr. 21 240 10 2400 July 25 320 13 4160 Sept. 19 130 15 1950 Total 1130 12030 Average cost = \$10.65 Ending inventory units = 1130-930 = 200 units a (1) FIFO ending inventory 2860 =(130*15)+(70*13) (2) LIFO ending inventory 1600 =200*8 (3) Weighted average ending inventory 2130 =200*10.65 Note: For FIFO, ending inventory comprises of 130 units from Sept. 19 purchase and 70 units from July 25 purchase For LIFO, ending inventory comprises of 200 units from Jan. 20 purchase