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

January $20$ Purchased $490$ units @ $$8=$ $$3,920$

April $21$ Purchased $110$ units @ $$10=1,100$

July $25$ Purchased $250$ units @ $$12=3,000$

September $19$ Purchased $90$ units @ $$13=1,170$

During the year, The Shirt Shop sold $760$ T$-$shirts for $$18$ each.

Required

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

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