! Required information Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1 [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 Purchased 330 units $ 12 = $3,960 Apr. 21 Purchased 140 units $ 13 = 1, 820 July 25 Purchased 250 units $ 14 = 3,500 Sept. 19 Purchased 90 units @ $ 16 = 1, 440 During the year, The Shirt Shop sold 630 T-shirts for $21 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 following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount.) FIFO LIFO Weighted Average Ending inventoryRequired information Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1 [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 Purchased 330 units @ $ 12 = $3,960 Apr . 21 Purchased 140 units $ 13 = 1, 820 July 25 Purchased 250 units $ 14 = 3,500 Sept. 19 Purchased 90 units $ 16 = 1, 440 During the year, The Shirt Shop sold 630 T-shirts for $21 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