Required information [The following information applies to the questions displayed below.] The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: Purchased 420 units $ 9 $10 $12 $13 $3,780 Jan. 20 Apr. 21 July 25 Sept. 19 Purchased 150 units 1,500 2,760 1,040 Purchased 230 units Purchased 80 units During the year, The Shirt Shop sold 730 T-shirts for $18 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 the nearest whole dollar amount. Weighted Average FIFO LIFO Ending inventory

Question
  1. 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 the nearest whole dollar amount.

 

Required information
[The following information applies to the questions displayed below.]
The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations:
Purchased
420 units
$ 9
$10
$12
$13
$3,780
Jan. 20
Apr. 21
July 25
Sept. 19
Purchased
150 units
1,500
2,760
1,040
Purchased
230 units
Purchased
80 units
During the year, The Shirt Shop sold 730 T-shirts for $18 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 the nearest whole dollar amount.
Weighted
Average
FIFO
LIFO
Ending inventory
Expand
Transcribed Image Text

Required information [The following information applies to the questions displayed below.] The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: Purchased 420 units $ 9 $10 $12 $13 $3,780 Jan. 20 Apr. 21 July 25 Sept. 19 Purchased 150 units 1,500 2,760 1,040 Purchased 230 units Purchased 80 units During the year, The Shirt Shop sold 730 T-shirts for $18 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 the nearest whole dollar amount. Weighted Average FIFO LIFO Ending inventory

Expert Answer

1 Rating

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Cost Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Prepare Closing Entries Merchandise Inventory 12/31/14 24,000   Common Stock     30,000   Ret...

A: Closing entries: The journal entries prepared to close the temporary accounts to Retained Earnings a...

Q: Why is the purchase journal used for journalizing the purchase of merchandise for resale on account ...

A: Purchase journal is a separate book kept in the company to maintain and track the information of pur...

Q: Topple Corporation leases skyscrapers in cities throughout the world to large corporations. Topple's...

A: Debt FinancingDebt financing means when a firm raises money for working capital or capital expenditu...

Q: The following is a list of account titles and amounts (in millions) reported at December 27, 2015, b...

A: Balance sheet refers to the statement of a company which shows the total value of liabilities & ...

Q: What is an inventory manager?

A: Inventory Management: It refers to the process of managing the Inventory or stock of raw materials, ...

Q: Support department cost allocation—reciprocal services method Davis Snowflake & Co. produces Chr...

A: Calculate the maintenance department cost and security department cost.

Q: how to do this questions? thanksssss!!

A: Hello, since you have posted a question with multiple sub-parts, we will solve first three subparts ...

Q: Contribution Margin Ratio a.  Young Company budgets sales of $950,000, fixed costs of $55,600, and v...

A: a. Calculation of contribution margin ratio: Therefore, the contribution margin ratio is 74%. Workin...

Q: Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporti...

A: Definition of Break-Even Point:Break-Even point can be defined as a point where total costs (expense...

Q: What is the Indirect Method used when preparing the Statement of Cash Flows and please give me a few...

A: Indirect method: Under indirect method the net income is adjusted with the increase or decrease of c...

Q: Your answer is partially correct.  Try again.     Included in the December 31 trial balance of ...

A: Liquidity depicts how fast an asset can be immediately purchased or sold in the market at a value mi...

Q: Sheffield Corp.can produce and sell only one of the following two products: Contribution Oven Hours ...

A: Compute contribution margin for the product Muffins as shown below:

Q: geNOWv21 Online teachir X keAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessi...

A: a.  Prepare journal entry to record sale of merchandise for cash and the cost of goods sold.

Q: roger owns a bicycle shop. once a week he and a group of friends rent the gym of the local club to p...

A: Roger is being unethical in his conduct for the reasons mentioned below: Roger is collecting cash fr...

Q: Target ROI is 17% Invested Capital is $513,941 Full Cost per unit $1,570 Expected sales volume is 93...

A: Return on Investment is computed by dividing the net profit by the total investment. 

Q: Recording Purchase and Sales Transactions Raymond Company and Geeslin Company both use a perpetual i...

A: Journal entry is prepared to record the day-to-day transactions of an organization. It includes reco...

Q: Kimberly Payne and Arionna Maples decide to form a partnership by combining the assets of their sepa...

A: PartnershipIt is that form of organization which is owned and managed by two or more persons who inv...

Q: Xavier and Yolanda have original investments of $50 000 and $100 000 respectively in a partnership. ...

A:  Partnership:Partnership is defined as an association of two or more persons to carry business for p...

Q: What type of cost is this? Total Costs Units January $136250 500 February $190750 700 If it is a mix...

A: Determine cost per unit for both the months.

Q: What is the difference between Wages Payable and Wages Expense? What statement do they appear on?  W...

A: Click to see the answer

Q: Deacon Company is a merchandising company that is preparing a budget for the three-month period ende...

A: Calculation of expected cash collections for April, May and June: Results of formulas used in excel ...

Q: Please solve the following then explain in steps how you solved the problem Revenue  for 2028 ???? D...

A: Statement of Retained Earning is a financial statement that represents the changes to the retained e...

Q: Danube, Toggle, and ConnectOn rely on various intangible assets to operate their businesses. These c...

A: Determine the impact of amortization on company\'s income from operation in the current year.

Q: The Sunshine Company has the following data in connection with its bankruptcy petition with the Secu...

A: Click to see the answer

Q: I am taking TCA 221 class. I am in Ch.8 now, which is ACASH. I need to use the net method of recordi...

A: Using net method:1.Required journal entry for recording purchase of inventory: Working note: Calcula...

Q: Question pinned below please answer all parts

A: A perpetual inventory framework is a technique for following and recording stock and expenses of pro...

Q: Marina Manufacturing is considering buying new equipment for its factory. The new equipment will red...

A: Compute degree of operating leverage before purchase of new equipment as shown below:

Q: for which funds are budgetary comparison schedules or statements required? should the actual revenue...

A: Financial accounting standards board (FASB):This is the organization which creates, develops, and ap...

Q: Please solve the following calculation and describe in steps how you solved it Revenues for 2028 $30...

A: Statement of Retained Earning is a financial statement that represents the changes to the retained e...

Q: Falls Creek Community Health Clinic uses the high-low method to analyze cost behavior and has determ...

A: High-low method is one of the methods used to analyse cost behaviour and can also used to determine ...

Q: The normal selling price of an inventory/stock item is £21 per unit. The item originally cost £15 pe...

A: Lower-of-cost-or-market value: The lower-of-cost-or-market value is a method which requires the repo...

Q: Please solve the following and explain in steps how you solved the calculation. Revenue for 2028 $80...

A: Calculate ending balance of  retained earnings:

Q: Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by ...

A: Bank reconciliation statement: Bank statement is prepared by the bank. The company maintains its own...

Q: Support Department Cost Allocation—Reciprocal Services Method Brewster Toymakers Inc. produces toys ...

A: a. Calculate the percentage of janitorial cost that should be allocated to the security department.

Q: Parrish Ch2 Pg31  What accounts would be debited or credited for each trans action? 1) Shareholder i...

A: Journal Entries

Q: Neyman Inc. has the following data for purchases and sales of inventory: Date Units Cost per Unit...

A: Cost of goods sold includes all the direct cost of a product that are incurred in its production.Cos...

Q: Sean Matthews is a waiter at the Duluxe Lounge. In his first weekly pay in March, he earned $300.00 ...

A: In this question,  federal income tax year didn't mentioned. I am assuming for the year 2019.Note: I...

Q: (Computing bad debts and preparing journal enteries) - the trial balance before adjustment of Taylor...

A: (a)Prepare journal entry to record  estimated bad debts assuming that the allowance is to provide fo...

Q: Swifty Inc manufactures model airplanes and repair kits. The planes account for 90% of the sales mix...

A: Definition of Break Even Point:Break Even point is the point at which the sales revenue is equal to ...

Q: At the end of the year, a company reports a balance in its Allowance for Uncollectible Accounts of $...

A: Allowance for Doubtful Accounts: This is a contra asset account to the Accounts Receivables account ...

Q: Classifying Liability-Related Accounts into Balance Sheet or Income StatementIndicate the proper fin...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 9 -- RECEI...

A: Account receivable: The amount of money to be received by a company for the sale of goods and servic...

Q: Crane Company exchanged equipment used in its manufacturing operations plus $3,300 in cash for simil...

A: (1) Prepare journal entries for Crane Co. and Cheyenne Co. to record exchange, if exchange lacks com...

Q: High-Low Method for a Service Company Continental Railroad decided to use the high-low method and op...

A: Click to see the answer

Q: How much must I deposit into an account every month to have $1,500,000 in 15 years at a rate of 7% c...

A: A recurring deposit is a special type of term deposit offered by banks which help people with regula...

Q: Garner's Antique Hot Rods recently sold a 1957 Chevy for $75,000 on account. The state sales tax is ...

A: Record the journal entry for sale as shown below:

Q: Issued Bonds at a Discount (Effective Interest) Crafty Corporation issued $475,000 of 5%, 7-year bon...

A: Click to see the answer

Q: Number 4 Smithson, Inc. produces two types of gas grills: a family model and a deluxe model. Smithso...

A: Hi, since there are multiple requirements in the posted question, we will answer first three questio...

Q: My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 8 -- CASH ...

A: Bank reconciliation:Bank statement is prepared by bank, while companies maintains its own records fr...

Q: A physical inventory of Liverpool Company taken at December 31 reveals the following.          Pe...

A: Hence, $324,136 is total amount of cost or market whichever is lower