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

Jan. 20	Purchased	400	units	@	$	4	=	$	1,600
Apr. 21	Purchased	90	units	@	$	5	=		450
July 25	Purchased	250	units	@	$	7	=		1,750
Sept. 19	Purchased	60	units	@	$	9	=		540

During the year, The Shirt Shop sold 650 T-shirts for $14 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.)

	FIFO	LIFO	Weighted Average
Ending inventory

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

	FIFO	LIFO	Difference
Gross margin