Reference no: EM13930579

Silver Sales had the following transactions for T-shirts for 2013, its first year of operations:

During the year, Silver Sales sold 650 T-shirts for $20 each. 

Required: 

a. Compute the amount of ending inventory Silver would report on the balance sheet, assuming the following cost flow assumptions: 
(1) FIFO, 
(2) LIFO, 
(3) Weighted average. 

b. Record the above transactions in general journal form and post to T-accounts assuming 
(1) FIFO, 
(2) LIFO, 
(3) Weighted average methods. Use a separate set of journal entries and T-accounts for each method. Assume all transactions are cash transactions. 

c. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.