b) Record the above transactions in general journal form and post to T-accounts using (1) FIFO, (2) LIFO, and (3) weighted average. 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.

The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 530 units @ $ 8 = 330 units @ $ 10 = 410 units @ $ 13 = 220 units @ $ 15 = $4,240 3,300 5,330 3,300 During the year, The Shirt Shop sold 1,200 T-shirts for $24 each. Exercise 5-5A Part a 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.) Ending Inventory FIFO LIFO Weighted average