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

January $20$Purchased$440$units@$$9=$$$3,960$April $21$Purchased$150$units@$$10=1,500$July $25$Purchased$240$units@$$11=2,640$September $19$Purchased$80$units@$$12=960$

During the year, The Shirt Shop sold $720$ T$-$shirts for $$17$ 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.