Exercise 5-20 Effect of inventory cost flow on ending inventory balance and gross margin LO 5-6 [The following information applies to the questions displayed below.] Dugan Sales had the following transactions for jackets in 2014, its first year of operations: Jan. 20 Purchased 84 units @ $16 = $ 1,344 Apr. 21 Purchased 487 units @ $18 = 8,766 July 25 Purchased 185 units @ $21 = 3,885 Sept. 19 Purchased 88 units @ $28 = 2,464 During the year, Dugan Sales sold 793 jackets for $57 each. References Section BreakExercise 5-20 Effect of inventory cost flow on ending inventory balance and gross margin LO 5-6 9.value: 0.90 pointsRequired information Exercise 5-20 Part a Required a. Compute the amount of ending inventory Dugan would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round intermediate calculations and final answers to nearest whole dollar amount.) rev: 02_09_2017_QC_CS_77853, 02_11_2017_QC_CS_77853 ReferenceseBook & Resources WorksheetDifficulty: 3 Hard Exercise 5-20 Part aLearning Objective: 05-06 Explain how different inventory cost flow methods (specific identification, FIFO, LIFO, and weighted average) affect financial statements. Check my work 10.value: 0.90 pointsRequired information Exercise 5-20 Part b b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.