! Required information Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross I [The following information applies to the questions displayed below.] The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 420 units @ $9 = $3,780 150 units @ $ 10 = 1,500 230 units @ $ 12 - 2,760 80 units @ $ 13 = 1,040 During the year, The Shirt Shop sold 730 T-shirts for $18 each. Exercise 5-5 (Algo) Part a Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the f assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round intermediate calculations to 2 decimal plac nearest whole dollar amount.) FIFO LIFO Weighted Average Ending inventory Required information Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balan [The following information applies to the questions displayed below.) The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of oper Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 420 units @ $ 9 = 150 units @ $ 10 230 units @ $ 12 = 80 units @ $ 13 = $3,780 1,500 2,760 1,040 During the year, The Shirt Shop sold 730 T-shirts for $18 each. Exercise 5-5 (Algo) Part b b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions FIFO LIFO Difference Gross margin