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 bed Jan, 20 Purchased 390 units Apr. 21 Purchased 110 units $3 $1,170 54= 440 July 25 Purchased 230 units $61,380 Sept. 19 Purchased 90 units $8= 720 bok nt coces During the year, The Shirt Shop sold 620 T-shirts for $13 each. 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. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.