Question

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. 20Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased 580 units @ $ 9 = 380 units @ $ 11 = 460 units @ $ 14 = 270 units @ $ 16 = $5,220 4,180 6,440 4,320 During the year, The Shirt Shop sold 1,350 T-shirts for $25 each. b. Record the above transactions in general journal form and post to T-accounts using (1) FIFO. (2) LIFO, and (3) we a separate set of journal entries and T-accounts for each method. Assume all transactions are cash transactions Complete this question by entering your answers in the tabs below. Require Acc WA Required B G) Required BT Required B | Acc FIFO Acc LIFO Required B G | LIFO WA peu requirea B G FIFO 6 7 of 9 < Prey !! Next > LOLA ON

Answer 1

Answer:

FIFO: Date Credit Debit 33,750 Year 1 General Journal Cash Sales Cost of goods sold Merchandise inventory 33,750 14,860 Year 1 14,860

Working Note-1 FIFO COST METHOD Purchase Sale Balance Date Unit Rate Total Unit Rate Total Unit Rate Total Jan. 20 580 9 5220 580 5220 L L L 580 9 5220 Apr. 21 380 11 4180 L 380 11 4180 LLLL LL580 9 5220 Jul. 25 380 11 4180 460 146440 460 14 6440 580 5220 | | | 380| 11|_ 4180 Sep. 19 390 14 5460 70 14980 270 16 4320 270 16 4320 Total 14860

LIFO: Date Year 1 General Journal Cash Sales Cost of goods sold Merchandise inventory Debit Credit 33,750 33,750 17,100 17,100 Year 1

Working Note-2 Date LIFO COST METHOD Purchase Sale Rate Total Unit Rate 580 9 5220 Unit Total Unit Jan. 20 580 Apr. 21 1 11 380 L 4180 L Balance Rate 9 580 380 580 380 460 340 11 Total 5220 5220 4180 52201 4180 6440 3060 L Jul. 25 11 460 14 6440 - 14 | 1 Sep. 19 3 240 80 460 2701 Total 9 2160 11 4180 146440 16 4320 17100 270 16 4320

WA: Date Year 1 General Journal Cash Sales Cost of goods sold Merchandise inventory Debit Credit 33,750 33,750 15,059 15,059 Year 1

Working Note-3 Date Unit Jan. 20 Apr. 21 Jul. 25 Sep. 19 Purchase Rate 580 380 11 460 14 270 16 WEIGHTED AVG. COST METHOD Sale Total Unit Rate Total Unit 5220 4180 6440 4320 1350 11.15 15059 Balance Rate 580 9.00 960 9.79 1420 11.15 340 15.00 Total 52201 9400 158401 5101

Cash FIFO Merchandise inventory Beg. Bal. 2016014860 Beg. Bal. 33750 20160 End. Bal. 13590 End. Bal. 5300 Sales Revenue Cost of goods sold Beg. Bal. Beg. Bal. 33750 14860 End. Bal. 33750 End. Bal. 14860 Cash LIFO Merchandise inventory Beg. Bal. | 20160 17100 Beg. Bal. 33750 20160 End. Bal. 13590 L End. Bal. 3060 Sales Revenue Cost of goods sold Beg. Bal. Beg. Bal. 33750 17100 End. Bal. 33750 End. Bal. 17100

Cash WA Merchandise inventory Beg. Bal. 20160 15059 Beg. Bal. 33750 20160 End. Bal. 13590 End. Bal. 5101 Sales Revenue Cost of goods sold Beg. Bal. Beg. Bal. 33750 15059 End. Bal. 33750 End. Bal. 15059