Required information 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.] The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 480 units 140 units 240 units 100 units $11 = $13 - $15 = $16 - $5,280 1.820 3,600 1,600 During the year, The Shirt Shop sold 800 T-shirts for $21 each. Exercise 5-20 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 intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount. LEO Weighted LIFO Average Ending inventory Required information 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.) The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 480 units 140 units 240 units 100 units @ @ @ @ $11 = $13 = $ 15 = $16 = $5,280 1,820 3,600 1,600 During the year, The Shirt Shop sold 800 T-shirts for $21 each. Exercise 5-20 Part b b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. FIFO LIFO Difference Gross margin