Question

# Required information [The following information applies to the questions displayed below.] The Shirt Shop had the...

Required information

[The following information applies to the questions displayed below.]

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

 Jan. 20 Purchased 490 units @ \$ 8 = \$ 3,920 Apr. 21 Purchased 290 units @ \$ 10 = 2,900 July 25 Purchased 370 units @ \$ 13 = 4,810 Sept. 19 Purchased 180 units @ \$ 15 = 2,700

During the year, The Shirt Shop sold 1,080 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 Rate Cost Jan. 20 Purchased 490 8 3920 Apr. 21 Purchased 290 10 2900 July 25 Purchased 370 13 4810 Sept. 19 Purchased 180 15 2700 Total 1330 14330 Less Units Sold 1080 Ending Inventory 250
 FIFO Sept. 19 Purchased 180 15 2700 July 25 Purchased 70 13 910 Total 250 Value of Ending Inventory 3610
 LIFO Jan. 20 Purchased 250 8 2000 Total 250 Value of Ending Inventory 2000
 weighted average Average Cost =14330/1330 10.77 Value of Ending Inventory 250*10.77 2693

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