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

January 20	Purchased	460	units	@	$6	=	$2,760
April 21	Purchased	120	units	@	$7	=	840
July 25	Purchased	220	units	@	$9	=	1,980
September 19	Purchased	90	units	@	$10	=	900

During the year, The Shirt Shop sold 720 T-shirts for $15 each.

Required

1. 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.
2. 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. 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. Note: Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions