Exercise 5-20A (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-6 The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased 460 units @ $ 6 = $ 2,760 Apr. 21 Purchased 120 units @ $ 7 = 840 July 25 Purchased 220 units @ $ 9 = 1,980 Sept. 19 Purchased 90 units @ $ 10 = 900 During the year, The Shirt Shop sold 720 T-shirts for $15 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