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: January 201 April 21 July 25 September 19 Purchased 400 units Purchased 150 units Purchased 200 units Purchased 100 units $8- $ 3,200 $10- $12 1,500 2,400 $14- 1,400 During the year, The Shirt Shop sold 650 T-shirts for $19 each. Exercise 5-5 (Algo) Part b b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Gross margin FIFO LIFO Difference