The Shirt Shop had the following transactions for T-shirts for 2018, its first year of operations:

 

            Jan. 20Purchased440units@$6=$2,640 

Apr. 21Purchased140units@$8= 1,120 

July 25Purchased210units@$10= 2,100 

Sept. 19Purchased80units@$12= 960 

 

During the year, The Shirt Shop sold 690 T-shirts for $17 each.

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. Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.

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