f2 ! Required information Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1 [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: January 20 April 21 July 25 September 19 Purchased 390 units @ $3 = Purchased 110 units @ $4 = Purchased 230 units @ $6 = Purchased 90 units @ $8 = During the year, The Shirt Shop sold 620 T-shirts for $13 each. Exercise 5-5 (Algo) Part b b. Compute the difference in gross margin between the Gross margin $ FIFO 5,730 LIFO $ 1,170 440 Difference 1,380 720 and LIFO cost flow assumptions.
f2 ! Required information Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1 [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: January 20 April 21 July 25 September 19 Purchased 390 units @ $3 = Purchased 110 units @ $4 = Purchased 230 units @ $6 = Purchased 90 units @ $8 = During the year, The Shirt Shop sold 620 T-shirts for $13 each. Exercise 5-5 (Algo) Part b b. Compute the difference in gross margin between the Gross margin $ FIFO 5,730 LIFO $ 1,170 440 Difference 1,380 720 and LIFO cost flow assumptions.
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Inventories
Section: Chapter Questions
Problem 6.3BE: Perpetual inventory using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as...
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