The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: Jan. 20 Purchased 440 units @ $ 6 = $ 2,640 Apr. 21 Purchased 140 units @ $ 8 = 1,120 July 25 Purchased 210 units @ $ 10 = 2,100 Sept. 19 Purchased 80 units @ $ 12 = 960

During the year, The Shirt Shop sold 690 T-shirts for $17 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. (Round intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount.)

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

Check my work 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.] Part 1 of 2 The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations: 7.14 points Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 440 units 140 units 210 units 80 units @ $ 6 - @ $ 8 - @ $ 10 = @ $ 12 = $2,640 1,120 2,100 960 eBook Hint During the year, The Shirt Shop sold 690 T-shirts for $17 each. Print Exercise 5-5 Part a Required 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. (Round intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount.) FIFO Weighted Average Ending inventory 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 440 units 140 units 210 units 80 units @ @ @ @ $ 6 - $ 8 $ 10 - $ 12 - $2,640 1,120 2,100 960 During the year, The Shirt Shop sold 690 T-shirts for $17 each. Exercise 5-5 Part b b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. FIFO LIFO Difference Gross margin