The shirt shop had the following transactions for T-shirts for 2016, it,s first year of operations:

Jan. 20 Purchased 530 units @ $ 8 = $4,240

Apr. 21 purchased 330 units@ $10 = $ 3,300

july 25 purchased 410 units @$ 13 =5,330

sept, 19 purchased 220 units @$15 =3,300

During the year , the shirt shop sold 1200 T-shirts for $24 each.

a. Compute the amount of ending inventory the shirt shop would report on the balance sheet, assuming the following cost flow assumption (1) FIFO (2) LIFO (3) weighted average

b. Record the above transactions in general journal form and post to T- account assuming the FIFO, LIFO, weighted average methods. 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 assumption