The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased 400 units @ $ 8 = $ 3,200 Apr. 21 Purchased 200 units @ $ 10 = 2,000 July 25 Purchased 280 units @ $ 13 = 3,640 Sept. 19 Purchased 90 units @ $ 15 = 1,350 During the year, The Shirt Shop sold 810 T-shirts for $20 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.)

[tex]\left[\begin{array}{cccc}Date&Cost&Units&Subtotal\\$Jan 20th&8&400&3200\\$April 21th&10&200&2000\\$July 25th&13&280&3640\\$Sept 19th&15&90&1350\\$Total&10.51&970&10190\\\end{array}\right][/tex]

We add the units purchase and the subtotal to get the total units available for sale.

Ending inventory physical units: 970 - 810 = 160 units

Then, we calculate for each method:

Weighted average:

cost of goods / available units = 10,190 / 970 = 10.51

160 units x 10.51 = 1,681.6‬

LIFO:

Ending inventory will be the oldest units:

160 units x 8 = 960

FIFO:

Ending inventory will be the newest units as the units are sold as soon as they come in

90 x 15 = 1,350

70 x 13 = 910

Total 2,260

marvineetesh3 marvineetesh3 · Answer 2 · 2022-03-02T15:16:28+01:00

The amount of ending inventory are as follows:

(a). FIFO=2,260

(b). LIFO =910

(c). Weighted Average(WA)= 1,682

What is inventory?

Inventory is also called the stock. It refers to the commodities and materials that a business controls for the final end of resale, manufacture or employment.

Computation of ending inventory:

We take the sum of the unit's purchase to acquire the total units gettable for sale.

Then,

The ending inventory of physical units:

[tex]970 - 810 \text{Units} = 160\text{Units}[/tex]

Now, refer the image which is given below for the calculations of the given three methods:

(a). FIFO:

Closing inventory will be the radical units as the units sold as soon as they come in the business.

[tex](90\times15)+(70\times13)=2,290[/tex]

(b). LIFO:

Closing stock will be the older units:

[tex]160\text{Units} \times 8 = 960[/tex]

(c). Weighted average:

[tex]=\dfrac{\text{cost of Goods}}{\text{Available Units} } \\\\=\dfrac{10,190}{970} = 10.51[/tex]

[tex]160\text{ units}\times 10.51 = 1,681.6[/tex]

Therefore, to learn about the calculations, refer to the image given below.

Learn more about the inventory, refer to:

https://brainly.com/question/14184995