Required information Exercise 5-5A 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 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 540 units @ $ 7. 340 units @ $ 9 = 420 units @ $ 12 = 230 units @ $ 14 = $3,780 3,060 5,040 3,220 During the year, The Shirt Shop sold 1,230 T-shirts for $23 each. Exercise 5-5A Part c c. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Difference in gross margin between the FIFO and LIFO cost flow assumptions