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 Apr. 21 Durchased July 25 Durchased Bapt. 19 Purchased 330 units 150 units 240 units 60 units $7 - $2,310 1,200 $10 2,400 012 - 720 During the year, The Shirt Shop sold 620 T-shirts for $17 each Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: () FIFO (2) LIFO, and (3) weighted average. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions Complete this question by entering your answers in the tabs below. Required Required Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost how assumptions (1) FIFO (2) LIFO, and (3) weighted average. (Round Intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount) FIFO LIFO Weighted Average Ending inventory 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: 2 Jan 20 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased 330 units 150 units 240 units 6 units $.7 - $2,310 - 1.200 510 - 2,400 $12 720 During the year, The Shirt Shop sold 620 T-shirts for $17 each Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions() FIFO (2) LIFO, and (3) weighted average b. Compute the difference in gross morgin between the FIFO and LIFO cost flow assumptions. Complete this question by entering your answers in the tabs below. Required Required A Compute the difference in gross margin between the FIFO and LIFO cost now assumptions. FIFO LIPO Difference Gross margin