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The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:

January 20	Purchased 400 units @ $8 =	$ 3,200
April 21	Purchased 200 units @ $10 =	2,000
July 25	Purchased 280 units @ $13 =	3,640
September 19	Purchased 90 units @ $15 =	1,350

During the year, The Shirt Shop sold 810 T-shirts for $20 each.

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.

b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.

\begin{tabular}{|l|l|l|l|} \hline & FIFO & LIFO & WeightedAverage \\ \hline Ending inventory & & & \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|} \hline & FIFO & LIFO & Difference \\ \hline Gross margin & & & \\ \hline \end{tabular}