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The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: e e Jan. 20 Purchased Apr. 21 Purchased

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The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: e e Jan. 20 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased 490 units 130 units 240 units 80 units $8 - $3,920 $ 9- 1,170 $11 - 2,640 $13 1,040 e During the year, The Shirt Shop sold 780 T-shirts for $18 each. 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. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Complete this question by entering your answers in the tabs below. Required A Required B Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost now assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) FIFO Woighted LIFO Averago Ending inventory Roquired Required B > The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations Jan. 20 Purchased Apr. 21 Purchased July 25 Purchased Sept. 19 Purchased 490 units 130 units 240 units 80 unita e @ $8 $3,920 $9- 1,170 $11 = 2,640 $13 = 1,040 During the year, The Shirt Shop sold 780 T-shirts for $18 each. 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. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Complete this question by entering your answers in the tabs below. Required A Requires Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. LIFO Difference Gross margin FIFO

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