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

Jan. 20	Purchased	310	units	@	$	7	=	$	2,170
Apr. 21	Purchased	150	units	@	$	9	=		1,350
July 25	Purchased	210	units	@	$	10	=		2,100
Sept. 19	Purchased	90	units	@	$	12	=		1,080

During the year, The Shirt Shop sold 560 T-shirts for $17 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.

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 the nearest whole dollar amount.)

Required A

	FIFO	LIFO	Weighted Average
Ending inventory

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

Required B

	FIFO	LIFO	Difference
Gross margin