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

Jan. 20	Purchased	540	units	@	$	7	=	$	3,780
Apr. 21	Purchased	340	units	@	$	9	=		3,060
July 25	Purchased	420	units	@	$	12	=		5,040
Sept. 19	Purchased	230	units	@	$	14	=		3,220

During the year, The Shirt Shop sold 1,230 T-shirts for $23 each.

questions:

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 cost per unit to 2 decimal places and final answers to the nearest whole dollar amount.)

b. Record the above transactions in general journal form and post to T-accounts using (1) FIFO, (2) LIFO, and (3) weighted average. Use a separate set of journal entries and T-accounts for each method. Assume all transactions are cash transactions. c. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.