April 21 Purchased 140 units @ $13 = 1,820 July 25 Purchased 240 units @ $15 = 3,600 September 19 Purchased 100 units @ $16 = 1,600 During the year, The Shirt Shop sold 800 T-shirts for $21 each.

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