Required information Exercise 5-5 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 2018, its first year of operations Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 410 units 130 units 230 units 80 units @ @ @ @ $ 12 = $ 13 - $ 14 = $ 15 = $4,920 1,690 3,220 1,200 During the year, The Shirt Shop sold 680 T-shirts for $20 each. Exercise 5-5 Part b b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Answer is complete but not entirely correct. FIFO LIFO Difference Gross margin $ 3.770 $ 2.570 $ 4,774